TWSE Press Release

FSC lifts the up-tick rule on borrowed constituents of Taiwan 50 Index

Publish Date︰2007/05/11 18:38

TSEC announced that since May 9, 2007, the up-tick rule on short selling borrowed constituents of Taiwan 50 Index has been lifted with the approval of the Financial Supervisory Commission (FSC). This puts foreign institutional investors, major players in SBL, on the same level ground with retail investors who have already enjoyed the exemption in their margin trading system for almost two years. In addition, this makes trading on TSEC more open and efficient, and at the same time, makes the Taiwan stock market more investor friendly.

In order to be exempt from the price restriction, a short sale on borrowed constituents of Taiwan 50 Index needs to be identified by making a number 6 tick on its sell order. Please note that the changes of the up-tick rule exemption is subject to the adjustment of the Taiwan 50 Index constituents. For further checking the exempt stocks, please visit TSEC’s website at http://www.tse.com.tw/en/products/SBL/SBL_info.php.

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