| Article 56 |
If the total volume of a specific financed securities of a securities financing enterprise plus the volume of the securities borrowed by securities firms from such securities financing enterprise for financing exceeds the total volume of the same securities obtained by the securities financing enterprise from its business of securities financing and re-financing, and the volume is still insufficient after it has applied for securities borrowing to other securities financing enterprises, it shall borrow by competitive auction from the owners of such securities from 8:00am of the following business day. If there is still shortfall, it shall negotiate with specific persons for borrowing before 2:00pm of the same day.
In the event that the volume acquired pursuant to the procedures set forth in the preceding paragraph is still insufficient, the securities financing enterprise shall entrust securities firms to conduct purchase by tender offer at this Corporation from 3:00pm to 3:30pm of the then current day. |
| Article 57 |
|
| Article 58 |
An owner of securities participating in lending by competitive auction shall fill out a competitive auction form and entrust a securities firm to handle it. The competitive auction form shall contain the name of the client, account number, name of the securities, and volume and unit price for lending, and the securities for lending by competitive auction shall be limited to those deposited in its securities depository account with the Central Securities Depository. A securities firm, upon acceptance of entrustment, shall proceed to conduct a pen-in (except for such securities that had been lent out in the previous business day). After a securities firm accepts entrustment, it shall mark the time and reference number on the competitive auction form, and enter the contents of the competitive auction form in sequence into the competitive auction system of this Corporation.
The keyed-in time as referred to in the preceding paragraph shall be from 9:00am to 12:10pm of the day of application for borrowing by competitive auction, and bid opening will be automatically completed at 12:30pm. After the bid opening is completed, this Corporation will publicly announce the unit prices and volume of securities of the awarded bids in the "reports on the basic market situation".
The reports on the competitive auction orders and successful bids will be printed out through the printer of the entrusted securities firms. Also, this Corporation will provide an auction result query function from 2:00pm. |
| Article 59 |
|
| Article 60 |
|
| Article 61 |
|
| Article 62 |
When a securities financing enterprise conducts a borrowing by negotiation, this Corporation will send personnel for supervision. The unit price for borrowing by negotiation shall not exceed 10% of the closing price of the object securities of the date on which the deficiency of financed securities occurs.
After an owner of securities agrees to lend the securities, it shall deliver the endorsed securities along with complete attachments as well as the securities lending statement to the securities financing enterprise by 2:00pm of the then current day, or transfer the same to the special account of the securities financing enterprise with the Central Securities Depository. The securities financing enterprise shall produce a receipt and deliver the same to the lender by 12:00pm of the first business day following the borrowing-by-negotiation date.
The criterion for payment of monetary collateral shall be solely determined by the securities financing enterprise and the lender through negotiation.
The securities financing enterprise shall redeliver the borrowed securities and pay the securities borrowing charge (securities borrowing charge = negotiated unit price x volume) to the lender by 2:00pm of the second business day following the borrowing-by-negotiation date, and collect the monetary collateral back from the lender. |
| Article 63 |
|
| Article 64 |
|