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Article NO. Content

Title:

Operating Rules for Securities Lending by Securities Firms  CH

Amended Date: 2019.10.29 (Articles 8 amended,English version coming soon)
Current English version amended on 2018.12.24 
Categories: Securities Exchange Market > Borrowing of Securities
Article 5     Securities collateral obtained by a securities firm from lending securities to customers shall be deposited in the dedicated account for securities lending collateral opened by that securities firm at the TDCC. If the customer issues a written statement of consent for collateral rehypothecation, the securities collateral may be utilized for the purposes listed below and no others:
  1. As collateral for securities borrowed through the TWSE securities lending system.
  2. As collateral for refinancing of securities by securities finance enterprises.
    If the securities collateral of the preceding paragraph are book-entry central government bonds, they shall be handled by transfer of registration at the clearing bank in accordance with the Directions for the Operation of Book-Entry Central Government Securities.
    A securities firm that utilizes any of its collateral securities obtained in the course of lending securities to customers shall return the same quantity and type of securities, or utilize said securities as the collateral of another borrowing transaction as agreed between the parties, when the customer returns the securities it borrowed.