The Taiwan Monthly

May 2018

Trading Policies

Broker-type SBL rule updates

Starting March 6, 2018, the TWSE revised “the Operating Rules For SBL By Brokers” to lift the limit of foreign currency collateral for SBL brokers and give further options for allocating returnable collateral.


Foreign currency collateral accepted by SBL Brokers had been confined by not exceeding 30% of the broker’s net worth. As the securities lending business thrives in recent years, removing the limit would give securities borrowers greater flexibility when providing collateral to SBL brokers.


Furthermore, the TWSE also removed a clause requiring that SBL brokers should return collateral to the client when they return the borrowed securities. With clients’ approval, SBL brokers are now allowed to reallocate this returnable collateral to another securities loan under the same borrowers’ account.


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