The Financial Supervisory Commission takes action! Introduce five major measures to combat market shorts

The volatility in Taiwan's stock market has intensified. The Financial Supervisory Commission announced this evening that it will introduce five major stabilization measures, which will be applicable from November 9. The picture shows Peng Jinlong, chairman of the Financial Supervisory Committee.

The Financial Supervisory Commission announced this evening that due to the recent significant fluctuations in Taiwan's stock market due to the impact of the international political and economic situation, the Financial Supervisory Commission has continued to closely monitor the international financial situation and changes in global stock markets, and has prepared relevant contingency measures. In order to maintain the order and stability of the securities market, the Financial Supervisory Commission announced today that it will adopt the following measures starting from November 9, 2020.

1. The number of daily intraday borrowing and selling orders is reduced from 30% to 3% of the average daily trading volume of such securities in the previous 30 business days. However, securities firms that issue put warrants, index investment securities, and business premises operate structured commodities and Equity derivatives trading business, borrowing and selling securities that act as liquidity providers of beneficiary certificates, or futures dealers that act as stock options or stock futures market makers for hedging needs, or securities firms that act as stock market makers that provide buying and selling quotes or hedging needs, are not subject to restrictions.

2. The minimum securities lending margin ratio for listed and over-the-counter securities is adjusted from 90% to 130%.

3. With the consent of the securities financial institution or securities firm, in addition to the odd shares of listed (over-the-counter) stocks and emerging counter-trade stocks that have been included in the scope of collateral on March 30, 2015, investors may also use other multiple collaterals that have market liquidity and can be objectively and reasonably evaluated to pay back the balance of financing self-prepared funds or securities lending margins (for example: re-entrusted foreign securities).

4. Currently, listed OTC companies have adopted electronic reporting for repurchasing treasury shares. Listed OTC companies are encouraged to evaluate and implement treasury shares in a timely manner based on their own capital allocation, financial status and purpose of repurchase.

5. Encourage listed companies to hold legal person briefings or participate in themed performance presentations in a timely manner, and proactively explain the company's operating status, financial performance, industry outlook and future development strategies to the outside world.

The Financial Supervisory Commission emphasized that it will continue to pay attention to changes in the international financial situation and domestic capital market conditions, and adjust the above-mentioned stabilization measures in a timely manner. It recommends that investors invest prudently and respond rationally according to their own investment strategies.