NO 251 – JANUARY 2014

WFE Focus
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Taiwan Stock Exchange exempts more shares from uptick rule and relaxes day trading restrictions

As of 23 September, the uptick rule waiver has been expanded to around 1,200 shares eligible for margin trading on TWSE and on Gre-Tai. These shares are now permitted to be sold at a price lower than the closing price of the previous trading day. This measure is expected to increase the ease of trading and expand hedging options available to investors. The uptick rule requires SBL short sales for borrowed shares to be entered at a price no lower than the previous day’s closing price. Before 23 September, the uptick rule had been applied to all but 150 shares for borrowed constituents of the Taiwan 50 Index, the Taiwan Mid-Cap 100 Index, and the Taiwan Technology Index, including domestic and offshore ETFs.

In addition, starting January 6, 2014, day trading restrictions will be relaxed for specific stocks. This measure aims to provide investors with a mechanism to manage risks and improve trading flexibility. Day trading refers to the practice of buying and then selling the same securities during the same trading session.

TWSE advises investors to visit the following website for a complete list of the securities exempt from the uptick rule as well as information relevant to day trading rules.

Dalian Commodity Exchange: Notice on revising the delivery quality standards of the corn futures contracts

To further reflect the spot goods and enhance the futures market’s capacity for serving the real economy, after the deliberation and approval of the board of directors and reporting to China Securities Regulatory Commission, Dalian Commodity Exchange has amended the Annex 11 of “Corn Delivery Quality Standards of Dalian Commodity Exchange” to the “Detailed Rules for Delivery of Dalian Commodity Exchange”, having revised up the unit weight indicators of the standard product and the alternatives as well as the discount amounts for the unit weights of the alternatives and the moldy grains. The amendment to the rules is hereby issued and the revised rules shall come into effect from the C1501 Contract.

Moscow Exchange: Initial margin requirements on the Derivatives Market to be changed for the New Year Holiday’s period

The Derivatives Market and Standard Sector increase initial margin requirements for the period of New Year holidays.

HKFE announced revised margins for futures contracts

Hong Kong Futures Exchange Limited (HKFE) announced that from the commencement of trading on Thursday, 2 January 2014, the minimum margins to be collected by an Exchange Participant from its clients in respect of their dealings in the following futures contracts was revised. The adjustments are based on the clearing company’s normal procedures and standard margining methodology.

HKEx’s AHFT to include block trading, mini HSI futures and mini HHI futures from 6 January 2014

Hong Kong Exchanges and Clearing Limited (HKEx) introduced Mini Hang Seng Index (Mini HSI) and Mini H-shares Index (Mini HHI) Futures as well as its Block Trading Facility (BTF) to its After-Hours Futures Trading (AHFT) session starting on Monday, 6 January 2014.