Regulations Governing Borrowing or Lending Money in Connection with Securities Business by Securities Firms Article 10

For a securities firm that conducts securities business money lending under Article 8 herein, the total outstanding financing balance for each type of security or beneficial interest certificate eligible for use as financing collateral may not exceed 5 percent of the TWSE listed or TPEx listed shares or beneficial interest units of that type of security, and, calculated in aggregate with the outstanding balance of margin financing [for that type of security] in the margin trading market and the outstanding balance of securities settlement financing [for that type of security] by securities finance enterprises may not exceed 25 percent of the TWSE listed or TPEx listed shares or beneficial interest units of that type of security.When the aggregate total of margin financing [for that type of security] in securities business money lending, in the margin trading market, and in securities settlement financing by securities finance enterprises as referred to in the preceding paragraph exceeds 20 percent of the TWSE listed or TPEx listed shares or number of beneficial interest units of that type of security, the remainder under the limit shall be distributed proportionally; the distribution method shall be drafted by the TWSE or TPEx. and submitted to the competent authority for final approval.