Taiwan Stock Exchange - Rules & Regulations Directory

Article NO. Content

Title:

Directions for Settlement by the Offsetting of Margin Purchases and Short Sales in Margin Trading 

Repeal Date: 2016.12.30 
Categories: Securities Exchange Market > Margin Transaction
7
    Securities firms engaging in margin-purchasing and short-selling securities shall suspend short sales immediately if the sum of the balance of short sales of each security plus the outstanding loans of securities lending and borrowing business reaches the combined total of the amounts in each of the following paragraphs:
  1. The margin loan balance.
  2. The Proprietary securities.
  3. The securities borrowed from the TWSE securities lending system.
    Calculation method of the ceiling of securities loans of daily offsetting of margin purchases and short sales for securities firms (based on business day):
    The margin loan balance on the previous day + the balance of proprietary securities on the previous day + the balance of securities borrowed from the TWSE securities lending system on the previous day - the outstanding securities loan on the previous day - the outstanding loans of securities lending and borrowing business on the previous day + short sales with spot securities as of today + securities purchased with the margin loan as of today + proprietary securities settled as of today + the lending securities returned as of today + the securities borrowed from the TWSE securities lending system as of today
Data Source:Taiwan Stock Exchange - Rules & Regulations Directory
twse-regulation.twse.com.tw