FSC reduces daily short selling quota in Taiwan
07 April 2025 Taiwan
Image: SeanPavonePhoto/stock.adobe.com
The Financial Supervisory Commission (FSC) has announced temporary measures on short selling to maintain market stability and in the interest of investors.
According to the authority, the US reciprocal tariff policy has caused stock markets in various countries to “fall sharply” in recent days.
While the FSC awaits further international market information, it has issued temporary measures which will take effect from 7-11 April 2025.
Daily intraday borrowed securities selling orders shall be reduced to three per cent (from 30 per cent) of the average daily trading volumes of the securities in the preceding 30 days.
Borrowed securities selling orders by securities firms for hedging needs such as issuing call warrants, operating structured products, and acting as market makers for stock options or stock futures by futures dealers, for example, are not subject to the restrictions.
Further, the minimum short lending margin ratio for listed and over-the-counter (OTC) securities shall be adjusted from 90 per cent to 130 per cent.
According to the authority, the US reciprocal tariff policy has caused stock markets in various countries to “fall sharply” in recent days.
While the FSC awaits further international market information, it has issued temporary measures which will take effect from 7-11 April 2025.
Daily intraday borrowed securities selling orders shall be reduced to three per cent (from 30 per cent) of the average daily trading volumes of the securities in the preceding 30 days.
Borrowed securities selling orders by securities firms for hedging needs such as issuing call warrants, operating structured products, and acting as market makers for stock options or stock futures by futures dealers, for example, are not subject to the restrictions.
Further, the minimum short lending margin ratio for listed and over-the-counter (OTC) securities shall be adjusted from 90 per cent to 130 per cent.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
