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Article 16
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The collateral financing calculation standards for a securities firm that operate non-restricted purpose loan business shall be as follows, save in the event of fractions of one trading unit or of one unit of beneficial rights.
- The value of TWSE and TPEx traded securities, except for central book-entry bonds, municipal bonds, common corporate bonds, secured convertible (exchangeable) corporate bonds, and financial bonds, is 60% of the closing price of the business day immediately prior to financing. However, for securities not eligible for margin purchase and short sale, the value shall be calculated as 40% of the closing price of the business day immediately prior to financing.
- The value of beneficial certificates of open-end funds traded on the TPEx is 60% of the net asset value of each unit of beneficial rights of the business day immediately prior to financing.The value of physical gold is 60% of the closing average at the closing of the business day immediately prior to financing.
- The value of beneficial certificates of open-end securities investment trust funds or futures trust funds is 60% of the net asset value of the business day immediately prior to financing. The value of physical gold is 60% of the closing average of the business day immediately prior to financing.
- The value of central book-entry bonds is 80% of the face value.
- The value of municipal bonds, common corporate bonds,secured convertible (exchangeable) corporate bonds, and financial bonds is 60% of the face value.
- The financing amount is calculated as below where claims in outstanding settlement funds receivable are lodged as security:
Financing amount = (Price payable by the securities firm to the client on the date of application) + (Price payable by the securities firm to the client on the day prior to the date of application) – (Price receivable by the securities firm on the date of application) – (Price receivable by the securities firmon the day prior to the date of application) – (Outstanding amount after the client has applied before the date of application for lodging the claims in outstanding settlement funds receivable as security). The securities firm may also calculate and grant the financing amount after deducting the financing interest from the financing amount first mentioned above.
A security firm may adopt a stricter standard of the calculation standard of preceding paragraphin accordance with the market status of the collateral market and the client credit risk.
If there is no closing price of the business day immediately prior to financing prescribed under subparagraph 1 of paragraph 1, the price shall be replaced with the price calculated according to the principles prescribed in Article 58-3, paragraph 2, subparagraph 2 of the Operating Rules of the Taiwan Stock Exchange Corporation or Article 57, paragraph 1 of the Taipei Exchange Rules Governing Securities Trading on the TPEx.
The financing calculation standard of the collateral set forth in paragraph 1 may be adjusted by TWSEin consultation withTPExbased on the conditions of the collateral.
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