The Taiwan Monthly

Apr. 2020

Trading Policies

Short sale rules tightened

The FSC announced that starting from March 19, 2020, the daily short selling volume limit will be reduced for the next three months from the current 30 percent to 10 percent of the average trading volume of the underlying stock during the previous 30 business days.


Once the limit is reached, SBL short selling orders will no longer be accepted during the rest of the day. However, these restrictions are exempted in the hedging operations for issuing call (put) warrants and over-the-counter structured instruments and equity derivatives trading business, and in the hedging of an enterprise engaged in futures proprietary trading (dealing) as liquidity providers for beneficial certificates or market makers for equity options or single stock futures.


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