On the distribution date, customers can sell or settle a short sale. However, withdrawal is not allowed. Also, to prevent the use of newly distributed stocks for settlements of sale amount in one and two business days before, the stocks are listed under the "controlled securities from book-entry deposit" in the customer's balance on the distribution day and the following business day. The transfer shall be conducted by executing the "Controlled Securities - Deposited Securities Transfer" transaction (Code: A63). The customer's balance of the transferee shall still be listed under "controlled securities from book-entry deposit."

To streamline the securities market's clearing and settlement operation, the Securities and Futures Bureau, Financial Supervisory Commission promotes the "Book-Entry Settlement System of Securities in Centralized Custody" and TDCC would be in charge of handling relevant matters. The system utilizes the highly efficient transfer function of computers to perform the securities market's clearing and settlement operation in order to enhance the securities market's operating efficiency, lower its operating costs, and expand its development. Since TDCC takes charge of matters associated with the "Book-Entry Settlement System of Securities in Centralized Custody," it has continuously studied and initiated various new businesses to reduce the securities market's cost in handling related matters. Businesses engaged by TDCC include securities custody, trade settlement and transfer, pledge and delivery, securities loans, conversion of convertible bonds, ETF creation and redemption, and all of which can be conducted via book-entry transfer.

On the outright purchases and sales transaction day, Taiwan Stock Exchange would submit the data in six batches to Taipei Exchange, which would then deliver the data to TDCC. The first batch is scheduled to be delivered at 10 am. The settlement date of outright purchases and sales is by 10 am of the second business day after the transaction day.

On the transaction day of transactions with repurchase agreements, Taipei Exchange would deliver the transaction data in batches to TDCC. The first batch is scheduled for 10 am with subsequent batches delivered every half hour. The last batch is scheduled for 15:15. The settlement date of transaction with repurchase agreement is the transaction date. Thus, settlement shall be completed before account closing on the transaction day.

(1) The customers shall apply to the investment trust companies to transfer their open-end fund beneficial certificates used as collateral to the customers' central depository accounts with securities firms/securities finance companies by executing the "Issuer Depository Book-Entry Account/Registration Account - Deposited Securities Account Transfer Application" transaction (Code: 671). (2) The customers shall then apply to the securities firms/securities finance companies to transfer their open-end fund beneficial certificates from the central depository accounts to the money lending/settlement financing collateral account.

TDCC transfers the securities immediately when notified by the Taiwan Stock Exchange.

According to the notice issued by the Taiwan Stock Exchange, the borrowing balance shall be applied before debiting the general balance.

No. According to the "Operating Rules of the Taiwan Stock Exchange" and the "Trading Rules of Taipei Exchange," the securities firm shall confirm that the order quantity does not exceed the customer's account balance when accepting the customer's sales order for normal settlement trading. Thus, the investor's stocks in his/her account with securities firm A shall be transferred to his/her account with securities firm B first for the stocks to be sold by the securities firm B.