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Article 10
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The securities broker must first sign a Contract for Securities Lending to Cover Shortfalls in Securities Deliverable in Day Trading with the customer or the other securities broker that lends the securities and with the principal that borrows the securities, respectively. The securities broker also must open a Special Account for Handling Shortfalls in Securities Deliverable in Day Trading before the broker may handle business in connection with securities lending to cover shortfalls in securities deliverable in day trading under Article 7.
The contract of the preceding paragraph shall specify at least the following:
- Securities lending period: that the securities will be returned after the securities broker has forcibly repurchased the securities and settlement has been completed.
- Processing fee rate and securities lending fee rate.
- Entitlement compensation.
- Handling of customer information.
A template of the contract under the preceding paragraph shall be adopted by the Taiwan Securities Association and submitted to the TWSE for recordation.
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