Article 42 |
A securities firm or securities finance enterprise shall set up a segregated "securities borrowing and lending account" ("SBL account") (A/C No.: XXX0-8800000), and a segregated "SBL collateral account" (A/C No.: XXX0-9999922), under its depository account, so that book-entry operations can be carried out for SBL transactions.
To use borrowed securities arising from its conduct of SBL business (as an alternative source of securities) to fulfill settlement obligations in the securities trading market, a securities firm shall set up a segregated "alternative-sourced offsetting securities settlement account" (A/C No.: XXX0-9999944) under its depository account, so that relevant book-entry operations can be carried out.
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Article 43 |
When a securities firm or securities finance enterprise obtains a source of securities, the operation shall proceed according to either of the following procedures:
- Where the securities are to be transferred from the securities firm's or securities finance enterprise's depository account:
- The securities firm or securities finance enterprise shall notify TDCC of the relevant information through TWSE or TPEx.
- When the securities firm or securities finance enterprise decides not to proceed with the transfer, it shall perform an "SBL Cancellation/Change" transaction (transaction code: K56) to notify TDCC.
- Upon receiving the notification described in item (1) and confirming the absence of the notification described in item (2), TDCC will immediately transfer the securities from the proprietary or customer account under the securities firm's or securities finance enterprise's depository account to the SBL account under the securities firm's or securities finance enterprise's depository account, and also report the status to TWSE or TPEx.
- Where the securities are to be transferred from the depository account opened at a securities firm ("the servicing securities firm") by the securities firm, by the securities finance enterprise, or by the securities finance enterprise's customer:
- The servicing securities firm shall perform an "SBL Outward Transfer Application" transaction (transaction code: K54) to notify TDCC.
- The securities firm or securities finance enterprise shall notify TDCC of the relevant information through TWSE or TPEx.
- After receiving the notifications described in the preceding 2 items and verifying the accuracy of the transfer information, TDCC will immediately transfer the securities from the depository account of the securities firm, the securities finance enterprise, or the securities finance enterprise's customer at the servicing securities firm to the SBL account under the securities firm's or securities finance enterprise's depository account, and also report the status to TWSE or TPEx.
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Article 44 |
When a securities firm or securities finance enterprise returns securities to the original source, the operation shall proceed in accordance with the following procedure:
- The securities firm or securities finance enterprise shall notify TDCC of the relevant information through TWSE or TPEx.
- When the securities firm or securities finance enterprise decides not to proceed with the transfer, it shall perform an "SBL Cancellation/Change" transaction (transaction code: K56) to notify TDCC.
- Upon receiving the notification described in subparagraph 1 and confirming the absence of the notification described in subparagraph 2, TDCC will immediately transfer the securities from the SBL account under the securities firm's or securities finance enterprise's depository account to the proprietary or customer account under the securities firm's or securities finance enterprise's depository account or to the customer account under the depository account of the servicing securities firm of the securities firm, the securities finance enterprise, or the securities finance enterprise's customer, and also report the status to TWSE or TPEx.
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Article 45 |
When a securities firm or securities finance enterprise lends securities, the operation shall proceed in accordance with the following procedure:
- The securities firm or securities finance enterprise shall notify TDCC of the relevant information through TWSE or TPEx.
- When the securities firm or securities finance enterprise decides not to proceed with the transfer, it shall perform an "SBL Cancellation/Change" transaction (transaction code: K56) to notify TDCC.
- Upon receiving the notification described in subparagraph 1 and confirming the absence of the notification described in subparagraph 2, TDCC will immediately transfer the securities from the SBL account under the securities firm's or securities finance enterprise's depository account to the proprietary or customer account under the securities firm's or securities finance enterprise's depository account; in the case of a securities finance enterprise lending securities to a securities firm, TDCC will immediately transfer the securities from the margin purchase/short sale account under the customer account under the securities finance enterprise's depository account to the SBL account under the securities firm's depository account. TDCC will also report the status to TWSE or TPEx.
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Article 46 |
When a securities firm or securities finance enterprise returns securities or repays entitlements, the operation shall proceed according to either of the following procedures:
- Where the securities are to be transferred from the securities firm's or securities finance enterprise's depository account:
- The securities firm or securities finance enterprise shall notify TDCC of the relevant information through TWSE or TPEx.
- When the securities firm or securities finance enterprise decides not to proceed with the transfer, it shall perform an "SBL Cancellation/Change" transaction (transaction code: K56) to notify TDCC.
- Upon receiving the notification described in item (1) and confirming the absence of the notification described in item (2), TDCC will immediately transfer the securities from the proprietary or customer account under the securities firm's or securities finance enterprise's depository account to the SBL account under the securities firm's or securities finance enterprise's depository account, and also report the status to TWSE or TPEx.
- Where the securities are to be transferred from the depository account opened at the servicing securities firm by the securities finance enterprise's customer or from the SBL account under the securities firm's depository account:
- The servicing securities firm shall perform an "SBL Outward Transfer Application" transaction (transaction code: K54) to notify TDCC.
- The securities finance enterprise shall notify TDCC of the relevant information through TWSE or TPEx.
- After receiving the notifications described in the preceding 2 items and verifying the accuracy of the transfer information, TDCC will immediately transfer the securities from the customer account under the securities firm's depository account to the SBL account under the securities finance enterprise's depository account; in the case of a securities firm returning borrowed securities to a securities finance enterprise, TDCC will immediately transfer the securities from the SBL account under the securities firm's depository account to the margin purchase/short sale account under the customer account under the securities finance enterprise's depository account. TDCC will also report the status to TWSE or TPEx.
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Article 47 |
When a securities firm's or securities finance enterprise's customer provides securities as collateral, the operation shall proceed according to either of the following procedures:
- Where the securities are to be transferred from the securities firm's depository account:
- The securities firm shall notify TDCC of the relevant information through TWSE or TPEx.
- When the securities firm decides not to proceed with the transfer, it shall perform an "SBL Cancellation/Change" transaction (transaction code: K56) to notify TDCC.
- Upon receiving the notification described in item (1) and confirming the absence of the notification described in item (2), TDCC will immediately transfer the securities from the customer account under the securities firm's depository account to the SBL collateral account under its depository account, and also report the status to TWSE or TPEx.
- Where the securities are to be transferred from the depository account opened at a securities firm by the securities finance enterprise's customer:
- The servicing securities firm shall perform an "SBL Outward Transfer Application" transaction (transaction code: K54) to notify TDCC.
- The securities finance enterprise shall notify TDCC of the relevant information through TWSE or TPEx.
- After receiving the notifications described in the preceding 2 items and verifying the accuracy of the transfer information, TDCC will immediately transfer the securities from the customer account under the securities firm's depository account to the SBL collateral account under the securities finance enterprise's depository account, and also report the status to TWSE or TPEx.
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Article 48 |
When a securities firm or securities finance enterprise returns a customer's collateral securities, the operation shall proceed in accordance with the following procedure:
- The securities firm or securities finance enterprise shall notify TDCC of the relevant information through TWSE or TPEx.
- When the securities firm or securities finance enterprise decides not to proceed with the transfer, it shall perform an "SBL Cancellation/Change" transaction (transaction code: K56) to notify TDCC.
- Upon receiving the notification described in subparagraph 1 and confirming the absence of the notification described in subparagraph 2, TDCC will immediately transfer the securities from the SBL collateral account under the securities firm's depository account to the customer account under its depository account, or from the SBL collateral account under the securities finance enterprise's depository account to the customer account under the depository account of the servicing securities firm of the securities finance enterprise's customer, and also report the status to TWSE or TPEx.
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Article 49 |
When a securities firm or securities finance enterprise utilizes collateral securities, the operation shall proceed in accordance with the following procedure:
- The securities firm or securities finance enterprise shall notify TDCC of the relevant information through TWSE or TPEx.
- When the securities firm or securities finance enterprise decides not to proceed with the transfer, it shall perform an "SBL Cancellation/Change" transaction (transaction code: K56) to notify TDCC.
- Upon receiving the notification described in subparagraph 1 and confirming the absence of the notification described in subparagraph 2, TDCC will transfer the securities from the securities firm's or securities finance enterprise's SBL collateral account to TWSE's depository account or to the margin purchase/short sale account under the customer account under the securities finance enterprise's depository account, and also report the status to TWSE or TPEx.
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Article 50 |
When a securities firm or securities finance enterprise applies for return of utilized collateral securities, the operation shall proceed according to either of the following procedures:
- Where the securities are to be transferred from TWSE's depository account, the securities firm or securities finance enterprise shall notify TDCC of the relevant information through TWSE. After receiving the notification, TDCC will transfer the securities from TWSE's depository account to the securities firm's or securities finance enterprise's SBL collateral account.
- Where the securities are to be transferred from the securities finance enterprise's depository account:
- The securities finance enterprise shall perform an "SBL Outward Transfer Application" transaction (transaction code: K54) to notify TDCC.
- The securities firm or securities finance enterprise shall notify TDCC of the relevant information through TWSE or TPEx.
- After receiving the notifications described in the preceding 2 items and verifying the accuracy of the transfer information, TDCC will transfer the securities from the margin purchase/short sale account under the customer account under the securities finance enterprise's depository account to the securities firm's or securities finance enterprise's SBL collateral account, and also report the status to TWSE or TPEx.
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Article 51 |
When a securities firm or securities finance enterprise disposes of collateral securities, the operation shall proceed in accordance with the following procedure:
- The securities firm or securities finance enterprise shall notify TDCC of the relevant information through TWSE or TPEx.
- When the securities firm or securities finance enterprise decides not to proceed with the transfer, it shall perform an "SBL Cancellation/Change" transaction (transaction code: K56) to notify TDCC.
- Upon receiving the notification described in subparagraph 1 and confirming the absence of the notification described in subparagraph 2, TDCC will transfer the securities from the securities firm's or securities finance enterprise's SBL collateral account to the default processing account opened by the securities firm or securities finance enterprise, and also report the status to TWSE or TPEx.
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Article 52 |
When a customer applies to a participant to transfer a balance of loaned securities to the customer's depository account under another participant, the customer shall present the securities passbook and submit a "Borrowing Balance Transfer Application - Substitute for Debit Voucher" (affixed with the original seal/signature-of-record) to the participant for application.
After receiving and verifying the accuracy of the application document(s) described in the preceding paragraph, the participant shall perform a "Borrowing Balance Transfer" transaction (transaction code: 425) to carry out the transfer.
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Article 52-1 |
When a securities firm uses borrowed securities arising from its conduct of SBL business (as an alternative source of securities) to fulfill a settlement obligation in the securities trading market, the operation shall proceed in accordance with the following procedure:
- After reporting the erroneous sell trade, customer default, or delayed settlement (failed trade), as the case may be, in accordance with applicable TWSE or TPEx provisions, the securities firm shall transfer the borrowed securities from the SBL account to the alternative-sourced offsetting securities settlement account in accordance with Article 45.
- After verifying that the borrowed securities have been transferred to the alternative-sourced offsetting securities settlement account, the securities firm shall perform an "Alternative-Sourced Offsetting Securities Settlement Application/Cancellation" transaction (transaction code: K21; notification type: 1. Application) and input relevant information to notify TDCC.
- After receiving the securities firm's notification, and after reviewing and verifying the accuracy of its application details and the balance in the alternative-sourced offsetting securities settlement account, TDCC will transfer the securities from the alternative-sourced offsetting securities settlement account to the error account or to the customer account under the securities firm's depository account and carry out settlement for the securities firm.
- If the securities firm has notified TDCC through the transaction described in subparagraph 2 and needs to cancel the application, it shall perform an "Alternative-Sourced Offsetting Securities Settlement Application/Cancellation" transaction (transaction code: K21; notification type: 2. Cancellation) to carry out the cancellation.
- The securities firm may perform an "Alternative-Sourced Offsetting Securities Settlement Detail Query" transaction (transaction code: K22) and view its application or cancellation information.
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Article 52-2 |
When a securities firm returns the securities borrowed for the purpose of fulfilling a settlement obligation in the securities trading market, as described in the preceding Article, it shall first transfer the returned securities from the error account, the default processing account, or the customer account under its depository account to the alternative-sourced offsetting securities settlement account, and then proceed in accordance with Article 46.
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Article 53 |
A securities firm or securities finance enterprise may perform the following transactions for account reconciliation:
- It may perform an "SBL Outward Transfer Application Query" transaction (transaction code: K55) to print an "SBL Outward Transfer Application Query Form" and view the securities outward transfer application information for its depository account.
- It may perform an "SBL Cancellation/Change Query" transaction (transaction code: K57) to print an "SBL Cancellation/Change Query Form" and view the SBL cancellation/change information for its depository account.
- It may perform an "SBL Change Detail Query" transaction (transaction code: K52) to print an "SBL Change Detail Query Form" and view the SBL change details.
- It may perform a "Transfer Transaction Detail Query" transaction (transaction code: 167; query type: 0) to print a "Transfer Transaction Details Query Form," or perform a "Transfer Transaction Details - Download" transaction (transaction code: 167F; query type: 0) to retrieve the transfer transaction details and check the securities inward transfer details for the SBL account or SBL collateral account for the current day or the previous business day.
- It may perform a "Control Information Query" transaction (transaction code: 350) to print a "Customer On-Hold Information Query" form and view the information on the balance of loaned securities in its depository account.
- It may perform a "Money Lending/Settlement Financing/SBL Collateral Details Query" transaction (transaction code: K19) to print a "Money Lending/Settlement Financing/SBL Collateral Details Query Form" and check customers' collateral details.
- It may perform an "SBL Change Summary Query" transaction (transaction code: K53) to print an "SBL Change Summary Query Form" and view the information on the changes in its SBL account balance for the current day.
- After the end of operations each day, it shall perform a "Collateral Summary Information Query" transaction (transaction code: K20) to print a "Collateral Summary Information Query Form," or perform a "Collateral Summary Information -Download" transaction (transaction code: K20F) to retrieve the summary information on collateral and check the relevant accounts.
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