Taiwan Stock Exchange to Implement New Fee Settlement System for Securities Lending on June 1

Central News Agency, Taipei, May 25. The Taiwan Stock Exchange (TWSE) announced today that it will implement a new system for the settlement of fees related to securities lending starting June 1. To align with international market practices, the TWSE aims to balance market efficiency with risk management. By adjusting the fee settlement method, the exchange intends to simplify the return process for negotiated lending transactions, reduce the administrative burden on market participants and intermediaries, and enhance overall market operation and development. The TWSE explained that the key adjustments include the fee settlement method for lending transactions. For outstanding securities, settlement will be conducted on a monthly basis. In cases of full or partial return of securities, negotiated transactions will also be settled monthly. For fixed-price and auction transactions, the current practice remains, with fee settlement completed on the business day following the return of securities. Regarding the timing of monthly settlements, the exchange will complete the process on the business day following the settlement on the first business day of each month. The TWSE had already announced these adjustments on November 3, 2025, and they will officially take effect on June 1. The TWSE stated that Taiwan's securities lending market has developed for over 20 years, with the lending platform launched on June 30, 2003. With the growth of Taiwan's stock market capitalization, the scale of lendable securities has expanded, driving steady growth in the lending market. Analyzing transaction types, the TWSE noted that in 2025, the transaction value of the lending center reached NT$11.19 trillion, with negotiated transactions accounting for approximately 98% and auction transactions for about 2%. This structure indicates that negotiated transactions, which offer flexibility in rates, duration, and collateral, better meet the operational strategies of institutional investors and have become the primary trading model.