Taiwan Stock Exchange Welcomes Measures to Stimulate Trading Activity
Starting from 23 September, around 1,200 borrowed stocks currently eligible for margin trading will be exempted from the uptick rule and may be sold at a price lower than the closing price of the previous trading day. The uptick rule requires SBL short sales for borrowed shares to be entered at a price no lower than the previous day’s closing price. Currently 150 stocks are exempted from the uptick rule.
This measure is expected to increase the ease of trading and expand hedging options available to investors. At the same time, the measure is also expected to facilitate margin day trading and attract capital to Taiwan’s securities markets. For a full list of securities which are exempted from the uptick rule, please visit http://www.twse.com.tw/en.
The FSC also plans to extend same-day trading to 200 large and mid-cap stocks, expected to take force on 6 January 2014.
The FSC has also introduced a trial period allowing Taiwan proprietary traders to trade securities at the 7-percent daily limit, which runs from 9 September 2013 to 8 March 2014.
Mr. Lee Sush-Der, the Chairman of TWSE said, “Each of these measures will provide a positive boost to the liquidity of the Taiwan securities market, already one of the most liquid markets in the Asia-Pacific. Investors are welcoming the opportunity to enact more flexible investment and hedging strategies, further increasing TWSE’s standing as a regional and global investment destination.”