The Taiwan Monthly

Trading Policies

Short selling restrictions lifted

Given the steady condition of global markets and the easing of global economic uncertainties, the Financial Supervisory Commission R.O.C. (Taiwan) announced its decision effective February 24, 2023 to terminate the following measures:

 

1.   Starting from October 1 to 11, 2022, the daily short selling volume limit had been reduced from the current 30 % to 20 % of the average trading volume of the underlying stock during the previous 30 business days. Thereafter starting from October 12, 2022, the daily short selling volume limit has been further reduced from 20 % to 10 %.

 

2.  Starting from October 21, 2022, if the closing price of a TWSE/TPEx listed stock or a Taiwan depository receipt falls by more than 3.5%, such a 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 a security continues to fall by more than 3.5%.

 

Effective February 24, 2023, the daily short selling quota will return to its previous 30 % limit, and the above range regarding securities falling by more than 3.5% is no longer applicable.

 

For further inquiries, please contact Ms. Wu at 1166@twse.com.tw