Taiwan Stock Exchange Eases Trading Rules To Boost Liquidity

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Updated

By TaiwanPlus

Newly eased trading rules have taken effect on the Taiwan Stock Exchange, shortening cooling-off periods to help maintain market liquidity. The change follows investor criticism that longer pauses prevented portfolio rebalancing during sell-offs, though analysts warn it could also expose investors to bigger price swings.

New Taiwan Stock Exchange Rules

REPORTER:  
Newly eased trading rules have come into effect to help Taiwan’s stock market maintain liquidity.

The change addresses criticism from investors who said previous, longer cooling-off periods prevented them from rebalancing portfolios during a sell-off. But analysts say investors could now face bigger swings without the protection of a longer cooling-off period. The Taiwan Stock Exchange says it will continue to review the rules to adapt to market conditions.