Published On: Tue, Aug 31st, 2010

TWSE Revises SBL Charges and Fees

The Taiwan Stock Exchange (TWSE) announced August 30 its revision of the calculation method for SBL brokerage commissions for fixed-rate and competitive auction transactions, as well as a new payment option for TWSE SBL service fees on negotiated transactions. Changes will be effective from September 7, 2010.

This revision implements a minimum charge on SBL brokerage commissions for fixed-rate and competitive auction transactions. The revision has been approved by the FSC and details are as follows:

I.For each transaction, if the SBL brokerage commission currently charged by a securities firm to a securities borrower is less than NTD 1,000, the maximum chargeable amount is NTD 1,000.

II.For each transaction, if the SBL brokerage commission currently charged by the securities firm to a securities lender is less than NTD 100, the revised commission will be a flat-rate of NTD 100. However, if the income from the loaned securities is less than NTD 100 after the deduction of the TWSE SBL service fee, the SBL brokerage commission will be limited to the remaining balance. The lender is not required to pay the difference.

As there are securities firms providing diversified services to their customers, they may charge fees to both borrowers and lenders if they source securities for both parties.

Also, in order to meet the practical needs , a new payment option is also being introduced which will allow the TWSE SBL service fee charged on negotiated transactions to be paid in full either by securities borrowers or lenders.

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