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The Joint Clearing and Settlement Fund (JCSF)

  • The JCSF 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 JCSF as calculated below.
  • The JCSF 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.
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