Newsletter
SECURITIES FIRM MANAGEMENT REGULATIONS
In line with the development of security market in Taiwan and to comply with provisions of the Fair Trade Law, from 1 July 2000, the upper limit of brokerage commissions for stock trans-actions on the TSE and the OTC will be 0.4125%. In line with the change of the brokerage system, the calculating method of monthly Default Loss Reserve payment will be changed from the pre-sent 2% of the commission income to 0.0028% of total value of traded securities.
To reasonably control and manage the risk of buying Category II shares upon the com-mencement of trading Category II shares on the OTC, a new provision is added that any broker-age house dealing stocks for its own account may not retain Category II shares valued over 10% of its net capital.