The Taiwan Monthly

Trading Policies

Lending Unit in Settlement-Driven SBL Can Provide Odd Lots, Effective December 30, 2024

The Taiwan Stock Exchange (TWSE) announced a new measure allowing the inclusion of odd lots in settlement-driven securities borrowing and lending (SBL), effective December 30, 2024. This initiative aims to provide opportunities for odd lot investors, optimize the use of on-hand odd lots, and promote inclusive finance.

Key points of the revised "Taiwan Stock Exchange Corporation Securities Borrowing and Lending Rules" include:

1.       Defining borrowing with one trading unit as settlement-driven borrowing and borrowing with one share as odd lot settlement borrowing.

2.    Distinguishing between whole share borrowing and odd lot borrowing based on the requested quantity.

3.  Prioritizing odd lot borrowing based on the lender's set borrowing rate, from lowest to highest. If the quantity of odd lots available at the same rate exceeds the required amount, preference is given to the lender offering the larger quantity. If both the rate and quantity are the same, a random selection is made.

TWSE will promote this new measure to securities firms and investors before its implementation. For details, visit the TWSE website.

For further inquiries, please contact Ms. Liao at 1221@twse.com.tw mailto:1221@twse.com.tw .