TWSE Press Release

Revised regulations for early recall and Multiple SBL Accounts.

Publish Date︰2005/10/13 17:07

On October 5, 2005, TSEC announced the revised securities borrowing and lending regulations and provided the on-line inquiry function for short selling on TSEC’s Market Information System. The detailed information are as follows: 1.Additional 3-day prior notice option for early recall In order to reduce the settlement risk from a lender and encourage the lender to participate in our market, TSEC added an extra choice for early recall loaned securities with a 3-day prior notice apart from the current ten-day prior notice under a lender in a fixed-rate or a competitive auction transaction. For instance, if orders are executed under the condition of 3-day prior notice, once the lender makes an early recall, the borrower has to return the loaned securities within 3 days. As the computer system needs to be modified, the effective date will be announced then. 2.Free Transfer between Multiple SBL Accounts In line with the regulations of Multiple Trading Account on the regular trading market, the revised regulations allow the investors to transfer their loaned positions between different Multiple SBL Accounts opened with same office of a securities firm. 3.Additional inquiry channel for real time available short selling volume In addition to inquiring about on-line available shares for short selling during the trading session from securities firms, a borrower may also inquire the same data via the newly introduced function on TSEC Market Information System(http://mis.tse.com.tw/). The information provided will be automatically updated every 25 seconds.

Top