Regulations Governing Securities Borrowing and Lending by Securities Firms Article 26

The maximum limit on the amount of securities that a securities firm conducting securities borrowing and lending business lends to or borrows from any one customer shall be regulated by the securities firm. The securities firm shall adopt internal procedures for credit extension operations and risk control, in order to appropriately assess customer credit limits and control risks.The internal procedures for credit extension operations and risk control under the preceding paragraph shall include control of credit limits for related accounts. The matters for compliance in such procedures shall be jointly drafted by the TWSE and TPEx, and submitted to the competent authority for final approval.