The Taiwan Monthly

May 2022

Trading Policies

The FSC put Debt tokens of STOs and the NT dollar margin of central clearing OTC derivatives into a 30 percent limitation

To engage international investors to take part in Taiwan's capital market, the Financial Supervisory Commission (the “FSC”) announced that offshore overseas Chinese and foreign investors can invest in Security Token Offerings (“STOs”) with a fund-raising amount of less than NT$30 million from January 19, 2022.


Furthermore, the Taiwan Futures Exchange (“TAIFEX”) announced OTC derivatives clearing rules on March 30, 2022 and will provide a central clearing service on the OTC Interest Rate Swap (“IRS”) shortly.


For the above two new measures, the FSC announced that debt tokens of STOs and the NT dollar margin of central clearing OTC derivatives must be considered into the limitation of not to exceed 30 percent of its inward remittance of funds.


Therefore, the total amount invested by an offshore overseas Chinese or foreign investor in government bonds, corporate bonds (excluding privately placed corporate bonds), financial debentures, ETNs, money market instruments, and money market funds, plus all NT dollar premiums paid for trades of OTC equity derivatives, OTC NT dollar interest rate derivatives, OTC structured instruments, option trades on convertible bond asset swaps, and NT dollar margin of central clearing OTC derivatives, plus the net settlement amount on price differences of swaps, must not exceed 30 percent of the net inward remittance.


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