The Joint Settlement and Clearing Fund (JSCF)

  • The JSCF is established to deal with securities firm defaults. It has two sources.
    1. TWSE's contribution of NT$3 bn, which is a split between two funds, s NT$2bn goes to the First Special Clearing Fund and NT$ 1bn to the Second Special Clearing Fund.
    2. Brokerage firms and securities dealers’ contribute NT 3.4bn to JSCF as calculated below.
  • The JSCF is shared by all securities firms, each of which contributes to the Fund according to the formula below:
    1. Fixed Part: Each brokerage firm shall contribute NT$3.5mn, with an extra NT$0.5mn for each additional branch. Each securities dealers shall contribute NT$5mn.
    2. Variable Part: This is the balance after the fixed part is subtracted from NT$3.4bn. The balance then is distributed among all the securities firms pro rata on the basis of the size of their net buy or net sell amount of the previous year.