The Taiwan Monthly

Trading Policies

Short sale rules tightened

The FSC announced that starting from October 1, 2022, the daily short selling volume limit will be reduced from the current 30 percent to 20 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.

 

Affected by the continuous geopolitical impact of the Ukraine-Russia war, inflation concerns and accelerated interest rate hikes by the US, the global and Taiwan stock markets have fluctuated sharply. The FSC further expanded the short-selling limit starting from October 12, 2022. The daily short selling volume limit will be reduced from the current 20 percent to 10 percent of the average trading volume of the underlying stock during the previous 30 business days.

 

Our regulators and market operators will closely evaluate market trends and execute measures to cope with market turmoil if necessary.

 

For further inquiries, please contact Ms. Chen at 0778@twse.com.tw.