Â鶹´«Ã½

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Â鶹´«Ã½
Leading the Way

Global Â鶹´«Ã½ Finance News and Commentary
≔ Menu
Â鶹´«Ã½
Leading the Way

Global Â鶹´«Ã½ Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. HomeRegulation news
  2. Taiwan again tightens short-selling restrictions
Regulation news

Taiwan again tightens short-selling restrictions


24 October 2022 Taiwan
Reporter: SFT

Generic business image for news article
Image: AdobeStock/iQoncept
Taiwan’s financial authorities reinforced short-selling restrictions on Friday, following on the back of similar action in the Taiwanese market taken on 3 October.

According to new rules applied by Taiwan’s Financial Supervisory Commission (FSC), restrictions will apply to short sales of an equity security if its share price has fallen by 3.5 per cent or more from its closing price from the previous trading session.

In these circumstances, investors will be prohibited from using the previous closing price, or a lower price, to short the stock through borrowing securities, according to a statement released by the FSC through Taiwan’s Central News Agency (CNA).

However, securities houses and futures traders will be exempt from these restrictions if they are conducting short selling activities for hedging purposes, according to the FSC.

The FSC’s Â鶹´«Ã½ and Futures Bureau reported that share prices for 105 stocks on the Taiwan Stock Exchange’s main board, and 47 stocks traded through the OTC market, fell by 3.5 per cent or more on Friday 21 October.

Consequently, these equities have been covered by the new short-selling rules when Taiwan’s markets reopened this morning.
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 Â鶹´«Ã½ Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →