The Taiwan Monthly

Trading Policies

Short selling restrictions lifted

Given the gradual stabilization of global markets, the lift on short selling bans in most countries, strong control measures to stop the spread of COVID-19 in Taiwan, the Financial Supervisory Commission R.O.C. (Taiwan) announced its decision, effective June 10, 2020, to abolish the following measures:

 

1. Starting from March 19, 2020, the daily short selling volume limit has been reduced from the current 30 percent to 10 percent of the average trading volume of the underlying stock during the previous 30 business days.

 

2. Starting from March 20, 2020, if the closing price of a TWSE/TPEx listed stock or a Taiwan depository receipt falls by more than 3.5%, such security cannot be short sold at a price lower than the closing price on the previous trading day, and the price restriction shall remain if the closing price of such security continues to fall by more than 3.5%.

 

Effective June 10, 2020, the daily short selling quota will return to its previous 30 percent limit, and the above measurement regarding securities falls by more than 3.5% is no longer applicable.

 

For further inquiries, please contact Mr. Ho at 1284@twse.com.tw