On 30 September 2022, TAI FSC made amendments re daily short selling orders.
- TAI FSC issued an order stipulating requirements for the sale of borrowed securities.
- Follows TAI FSC June 2021 adjusted margin purchase/short selling.
Rules
- Combined balance of security borrowing and lending (SBL) short sale volume and margin short sales shall not exceed 25% of the listed/OTC shares or beneficiary units.
- SBL short sale volume shall not exceed 10% of listed/OTC shares or beneficiary units.
- Intraday short sale orders shall not exceed 20% of the daily average transaction volume of the securities in the preceding 30 business days, with certain exceptions.
- Calculation formula shall be computed according to the relevant TAI EXC circulars.
- When combined balance of SBL short sales volume and margin short sales is over 20% of the shares or beneficiary units, it shall be handled according to TAI EXC directions.
- For the purpose of calculating the number of beneficiary units of ETF beneficiary certificates, number of issued beneficiary units of previous business day shall be used.
Effectiveness
- The rules are effective on 1 October 2022.
- Order FSC no. 1100362039 dated 4 June 2021 shall be abolished at the same time.
