On Jul. 18, TAI EXC amended rules re odd-lot trading and lending.
TAI EXC amended Securities borrowing and lending rules, to expand securities lending sources to include odd-lot shares, following the introduction of odd-lot trading.
Follows TAI EXC Oct. 2020 successfully launched intraday odd-lot trading, see #78033.
Amendments
If one trading unit is used as reported lending unit, it is referred to as delivery demand borrowing; if one share is used, it is referred to as odd lot delivery demand borrowing.
Specify different targets for lending securities under delivery demand and odd-lot delivery demand, based on the requested number of securities.
Priority for borrowing odd-lot settlement demand loans is set by the lending rate, with lowest rate given priority; if rate/quantities are identical, borrowing is done randomly.
Bank fees re transfer of odd-lot lending income are covered by borrowing brokerage, with specified methods for calculating the distributed amounts to lending brokerage.
Effectiveness
The amendments are effective from Dec. 30, 2024.
Jul. 2024 TAI TPEX Update
On Jul. 26, 2024, TAI TPEX published a similar update on the Regulations governing securities borrowing and lending; TAI EXC also published press release saying lending units in settlement-driven securities borrowing and lending can provide odd lots.
Sep. 26, 2024 Securities Lending Computer
On Sep. 26, 2024, TAI EXC issued Supplementary instructions for securities lending computer operations, allowing lenders to provide odd-lots for settlement needs.
Modified the receivable and payable amount file and refundable margin details file.
Added new securities lending remittance expense file and remittance income file.
These new files will also take effect from Dec. 30, 2024.
Oct. 2024 TAI DCC Lending Unit
On Oct. 11, 2024, TAI DCC adjusted lending unit to allow shares as settlement unit; to comply with new rules allowing odd-lot shares for securities lending in settlement.
Key transaction codes (370, 371, 373) are updated with a new lending unit field.
New authorization forms with lending unit option will be available from Dec. 2, 2024.
