The Taiwan Monthly

Trading Policies

The TWSE adjusts the ceiling of the SBL fee rate from 20% to 16% per annum

The amendments to Article 5 of the“Taiwan Stock Exchange Corporation Securities Borrowing and Lending Rules”and Article 14 of the“Operating Rules for Securities Lending by Securities Firms”will be implemented on July 20, 2021. For further details, please refer to http://market-regulation.twse.com.tw/ENG/EN/law/DAT0201.aspx?FLCODE=FL007044

and http://market-regulation.twse.com.tw/ENG/EN/law/DAT0201.aspx?FLCODE=FL041484.

 

For existing SBL loans with the borrowing fee rate exceeding 16% per annum, actions shall be taken as follows:

1. Competitive bidding of the TWSE platform: Borrowers shall return the securities by July 19, 2021.
2. Negotiated trades of the TWSE platform: The two parties concerned shall negotiate a fee rate lower than 16% per annum, and entrust a securities firm to submit with the TWSE the change of the fee rate information by July 19, 2021. Otherwise, borrowers shall return the securities by July 19, 2021.
3. Negotiated transactions with brokers: Brokers shall reach out to their SBL clients to negotiate a fee rate lower than 16% per annum, and articulate the newly-negotiated rate in the SBL agreements by July 19, 2021. Otherwise, borrowers shall return the securities by July 19, 2021.

 

For further inquiries, please contact Ms. Lin at 0367@twse.com.tw