TWSE Press Release

Revisions of TSEC Securities Lending System Implemented March 14, 2005

Publish Date︰2005/03/14 16:43

TSEC announced today that the securities lending system, as amended, becomes effective immediately. As the system becomes effective, so is the readiness of the on-line computer system that supports it.

The amended system differs from the old system with respect to the followings:

-The system allows, for all types of securities lending transactions, a one time roll over for a term up to six months.
-The system allows, for securities lending transactions on fixed-price basis, or competitive-auction basis, the conveniences such as:
 •Partial return of the borrowed securities,
 •Central Government bonds, in book-entry form, are eligible collaterals,
 •Collateral may be returned to the borrower account by direct credit,
 •Excessive collateral coverage may be returned to borrower.

TSEC expects that, with the above improvements in place, the securities lending market is expected to benefit from a higher market turnover and a more active participation on all fronts.