Taiwan Stock Exchange To Relax Lending Rules For Brokers - New Rules Aim To Support The Growth Of Taiwan’s Financial Sector And Will Take Effect From 30 November 2015

The Taiwan Stock Exchange (TWSE) recently announced amendments to its “Operating Rules for Securities Business Money Lending by Securities Firms”, which will expand the range of financial products available to be loaned by brokers to investors and the types of collateral that can be accepted.

Under the new amendments, brokers will be able to loan additional securities and commodities products to investors beyond the range of financial products that are currently able to be loaned, which are: TWSE listed securities, general stocks listed on the Taipei Exchange (TPEx) and government bonds. The additional financial products that will be able to be loaned include: open-end funds, futures funds, applications for shares in companies scheduled to list as an initial public offering (IPO) or secondary public offering (SPO) on TWSE or TPEx, municipal bonds, corporate bonds, financial bonds and spot gold products, among others. Each of these financial products will also become acceptable as collateral for loans except for the financing of IPO and SPO subscriptions for companies scheduled to list on TWSE or TPEx.

The new amendments will come into force on 30 November 2015.

The changes will enable brokers to offer more diverse services to investors who have been asking for more channels to access capital to invest in Taiwan’s financial markets. It will also increase the global competitiveness of Taiwan’s brokers and support the further development of Taiwan’s capital markets and economy.