Taiwan – FSC Extends Short Selling Measures

Taiwan – FSC Extends Short Selling Measures

On 19 April 2025, TAI FSC announced short selling measures will continue to be enforced.

  • Given the ongoing uncertainty in global trade negotiations and geopolitical risks, TAI FSC will maintain these measures to uphold market stability and protect investors.
  • In April 2025, TAI BAC issued measures to help firms affected by US tariffs:

Announced measures:

  • An investor may use other collateral that has liquidity and with assessable value to make up difference in self-provided funds for margin financing/short selling margin.
  • This requires the consent of the securities financing company or securities firm.
  • Reduce number of daily intraday borrowing, selling orders from no more than 30% to 3% of the average daily trading volume of the securities in previous 30 business days.
  • However, this restriction does not apply to securities firms selling borrowed securities due to, for instance, the issuance of call warrants or index investment securities.
  • It also does not apply to futures brokers serving as stock options/stock futures market makers, or securities firms as market makers to provide quotes/meet hedging needs.
  • Adjust minimum short lending margin ratio for listed/OTC stocks from 90% to 130%.