Procedure of Handling the Securities Firm's Default

When a securities firm defaults, TWSE will designate another appointed securities firm to deliver the funds to TWSE. The appointed securities firm will receive the securities owed and then cash them out in the market. The resulting difference of payments and expenses incurred will be compensated by the Joint Settlement and Clearing Fund. After using the Fund, TWSE will assume the responsibility and claim compensation from the defaulted securities firm.