As of the beginning of February 2016, the Taiwan Stock Exchange (TWSE), in compliance with the Financial Supervisory Committee’s (FSC) amended regulation, has allowed unlimited day trading for all securities eligible for margin trading and short selling – almost all stocks, ETFs and warrants listed on its market.
The move expands on the earlier removal of day-trading restrictions on constituent stocks of the ‘Taiwan 50 Index’ and ‘Taiwan Mid-Cap 100 Index’, as well as publicly listed ETFs and stock warrants announced by the FSC on 1 June 2015. As of 1 February 2016, the total number of securities listed on TWSE eligible for day trading rose to 907, up from 250 securities as of 31 December 2015, accounting for approximately 98.75% of the value of total market transactions and 99.7% of market value.
TWSE expects the removal of day trading restrictions will deliver more trading volume to the Taiwan market and provide investors with additional hedging instruments.
In order to address the need for additional securities lending sources, TWSE has also amended the ‘Operational Rules Governing Day Trades of Securities’ to allow borrowed securities to be used as collateral for shortfalls any arising from day trading.
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Taiwan Stock Exchange Removes Day Trading Restrictions For Almost All Securities - New Rules To Stimulate More Trading Volume And Provide Investors With More Hedging Instruments - Borrowed Securities Now Eligible To Cover Day Trade Shortfalls
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