FSC to extend short selling measures for Taiwan
14 April 2025 Taiwan
Image: paulcowell/stock.adobe.com
The Financial Supervisory Committee (FSC) has extended the use of stabilisation measures in Taiwan by one week to 18 April.
These measures include daily intraday securities lending order quantity, minimum securities lending margin ratio, and the relaxation of collateral range.
On 6 April, the FSC introduced the three measures, citing the US reciprocal tariff policy 鈥� which caused stock markets in various countries to fall sharply 鈥� as a key factor of its implementation.
The stock market stabilisation measures have, according to the FSC, achieved the expected effect and curbed speculative selling.
Although US President Trump announced a 90-day suspension of reciprocal tariffs, and with the evolution of US policies, the FSC says that both international Taiwanese stock markets have gradually stabilised after experiencing 鈥渉uge fluctuations鈥�.
While this suggests investor confidence has gradually recovered, the US tariff policy and its potential impact on various countries still brings with it 鈥済reat uncertainty鈥� in the short term, the FSC reports.
The short selling measures include reducing daily intraday borrowed securities selling orders 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 for market making, are not subject to the restrictions.
Further, the minimum short lending margin ratio for listed and over-the-counter (OTC) securities will continue to be adjusted from 90 per cent to 130 per cent.
These measures include daily intraday securities lending order quantity, minimum securities lending margin ratio, and the relaxation of collateral range.
On 6 April, the FSC introduced the three measures, citing the US reciprocal tariff policy 鈥� which caused stock markets in various countries to fall sharply 鈥� as a key factor of its implementation.
The stock market stabilisation measures have, according to the FSC, achieved the expected effect and curbed speculative selling.
Although US President Trump announced a 90-day suspension of reciprocal tariffs, and with the evolution of US policies, the FSC says that both international Taiwanese stock markets have gradually stabilised after experiencing 鈥渉uge fluctuations鈥�.
While this suggests investor confidence has gradually recovered, the US tariff policy and its potential impact on various countries still brings with it 鈥済reat uncertainty鈥� in the short term, the FSC reports.
The short selling measures include reducing daily intraday borrowed securities selling orders 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 for market making, are not subject to the restrictions.
Further, the minimum short lending margin ratio for listed and over-the-counter (OTC) securities will continue to be adjusted from 90 per cent to 130 per cent.
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