• TAI FSC, TAI Justice issued orders for stipulating rules re para 2 of art 18, subpara 3 of para 1 of art 60, subpara 11 of para 1 of art 138 of Securities and exchange act, art 6 of Standards governing eligibility of securities for margin purchase and short sale.
• Also for the stipulation pursuant to article 61 of Securities and exchange act, which stipulates rules for the amount limits, periods, financing ratios, and margin percentages for margin purchases and short sales in securities trading.
• Follow TAI FSC February 2024 adjusted daily intraday limit of short selling order.

Intraday Short Selling

• TAI EXC reduced allowable volume of intraday short selling via securities borrowing.
• Combined borrowed and margin short sales must not exceed 25% of total outstanding shares or units; borrowed short sales alone must not exceed 10% of outstanding.
• Daily intraday short selling must not exceed 3% of the 30-day average trading volume.
• Certain market participants such as warrant issuers, ETF market makers, structured product dealers, equity derivatives traders are exempt from the 3% limit for hedging.
• Method of calculation, daily short selling limits are based on TAI EXC announcements.
• If combined balance of borrowed, margin short sales exceeds 20% of the outstanding shares/units, additional quota management rules from TAI EXC, TPEX must be followed.
• For ETF, calculation of total units is based on previous business day's total issued units.

Margin Requirements

• Each brokerage must independently manage the maximum financing and short selling limits per client, per security; establish internal credit risk management procedures.
• Minimum margin requirement for short selling of TAI EXC and TPEX securities is 130%.

Effectiveness

• These rules will take effect on 7 April 2025.