Regulations Governing Securities Firms Article 32-1
As needed for hedging related to the issuance of call (put) warrants and exchange traded notes and the operation at its place of business of structured instruments and equity derivatives, a securities firm may borrow and sell, or sell short, the underlying securities, exempt from the restriction that the selling price of the securities borrowed or sold short may not be lower than the closing price of the previous business day.A securities firm, for purposes of providing bid and ask quotes or meeting hedging needs in its capacity as a market maker, may borrow and sell the underlying securities, exempt from the restriction that the selling price of the securities borrowed may not be lower than the closing price of the previous business day.A securities firm selling securities by means of borrowing them as referred to in the preceding two paragraphs shall enter into a loan contract with the lender of the securities. The following particulars shall be specified in the loan contract:1. Name, volume, period, and rate of the loaned securities.2. Means of exercise of shareholders' rights of the loaned underlying securities.3. The means of reimbursement by the securities firm of the rights/dividend value to the lender for ex-rights/ex-dividend dates of the loaned securities (including the means of calculation, whether reimbursement is to be made in cash or securities, and the reimbursement date).4. Means stipulated between the parties for return of the securities upon expiry of the contract (including whether or not the securities may be refunded as cash).5. Means stipulated between the parties for handling of breach and related matters of damages.
中文原文 證券商管理規則第32-1條
證券商得因發行認購（售）權證、指數投資證券及營業處所經營結構型商品、股權衍生性商品避險之需要，借券或融券賣出標的證券，不受借券或融券賣出之價格不得低於前一營業日收盤價之限制。
證券商得因擔任股票造市者提供買賣報價或避險之需要，借券賣出標的證券，不受借券賣出之價格不得低於前一營業日收盤價之限制。
前二項以借券方式賣出有價證券者，應與借券人簽訂出借契約。
下列事項應於出借契約載明之：
一、出借有價證券之名稱、數量、期間及費率。
二、出借標的證券股東權行使之方式。
三、出借之證券遇除權除息時，證券商補償出借人權息價值之方式（含計算方式、以現金或有價證券補償、補償日）。
四、雙方約定契約到期時，還券之方式（含得否以現金歸還之）。
五、雙方約定違約之處置方式與相關損害賠償事項。
證券商得因擔任股票造市者提供買賣報價或避險之需要，借券賣出標的證券，不受借券賣出之價格不得低於前一營業日收盤價之限制。
前二項以借券方式賣出有價證券者，應與借券人簽訂出借契約。
下列事項應於出借契約載明之：
一、出借有價證券之名稱、數量、期間及費率。
二、出借標的證券股東權行使之方式。
三、出借之證券遇除權除息時，證券商補償出借人權息價值之方式（含計算方式、以現金或有價證券補償、補償日）。
四、雙方約定契約到期時，還券之方式（含得否以現金歸還之）。
五、雙方約定違約之處置方式與相關損害賠償事項。