Taiwan – FSC Limits Daily Short Selling

Taiwan – FSC Limits Daily Short Selling

On 21 October 2022, TAI FSC introduced measures to protect the rights of investors and avoid the accelerated decline of individual stock prices due to short selling transactions.

  • For listed/OTC stocks and Taiwan depository receipts through the securities lending system, if the closing price on that day falls by more than 3.5%, SBL prices for the next trading day shall not be lower than the closing price of the previous trading day.
  • If closing price next day still falls by more than 3.5%, price restrictions will continue.
  • Also stipulated measures for day trading where reverse transaction is not complete.