Taiwan Stock Exchange allows unlimited day trading
02 February 2016 Taipei
Image: Shutterstock
The Taiwan Stock Exchange (TWSE) is now allowing unlimited day trading for all securities eligible for margin trading and short selling, covering almost all of the stocks, exchange-trade funds (ETFs) and warrants listed on its market.
The relaxation follows the implementation of the Taiwan Financial Supervisory Committee’s (TFSC) amendments to the relevant regulation, in a bid to stimulate more trading volume and provide investors with more hedging instruments.
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 TFSC in June last year.
As of the beginning of February, the total number of securities listed on TWSE that are eligible for day trading rose to 907, up from 250 securities at the end of 2015, accounting for approximately 98.75 percent of the value of total market transactions and 99.7 percent of market value.
TWSE has also amended its operational rules governing day trades to allow borrowed securities to be used as collateral for any shortfalls arising from day trading.
The relaxation follows the implementation of the Taiwan Financial Supervisory Committee’s (TFSC) amendments to the relevant regulation, in a bid to stimulate more trading volume and provide investors with more hedging instruments.
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 TFSC in June last year.
As of the beginning of February, the total number of securities listed on TWSE that are eligible for day trading rose to 907, up from 250 securities at the end of 2015, accounting for approximately 98.75 percent of the value of total market transactions and 99.7 percent of market value.
TWSE has also amended its operational rules governing day trades to allow borrowed securities to be used as collateral for any shortfalls arising from day trading.
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