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Article NO. Content


Operating Rules for Securities Lending by Securities Firms  CH

Amended Date: 2021.06.07 (Articles 7-2 amended,English version coming soon)
Current English version amended on 2021.05.06 
Categories: Securities Exchange Market > Borrowing of Securities
Article 8     If for three consecutive years or longer there is no record of any lending transaction by the customer that opens a securities lending account, the securities firm shall promptly cancel the securities lending transaction account and notify the customer, except where the customer has executed a “securities firm securities borrowing and lending agreement (to borrow securities from customer)” for the sheer purpose of lending securities.
    If a customer must terminate a securities lending account that it opened, it shall fill out an application for termination of the securities lending account. When the securities firm has investigated and determined that all its lending transactions have been closed out and all relevant obligations settled, it shall promptly carry out account cancellation procedures.
    A securities firm may process an application for account cancellation by correspondence or electronic means that is sufficient to identify the customer as the applicant itself or its indication of intent.