TWSE 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 www.twse.com.tw/en/ for a complete list of the securities exempt from the uptick rule as well as information relevant to day trading rules.