Taiwan's stock market may face volatility after the holiday! The Financial Supervisory Commission takes emergency measures to stabilize market confidence.

The international stock market is in turmoil, and the Financial Supervisory Commission remains open during the holidays.

On April 6, 2025, in response to the turmoil in the global financial markets, the Financial Supervisory Commission of Taiwan (referred to as the FSC) announced that from April 7 to April 11, it will implement three temporary market stabilization measures aimed at mitigating the potential impact of international storms on Taiwan's capital market.

The recent market instability is caused by the new "reciprocal tariff" policy announced by the United States, leading to severe fluctuations in international stock markets. The Financial Supervisory Commission stated that although the Taiwan stock market is closed during the Qingming Festival holiday, it has been closely monitoring the international financial situation and is developing response plans, hoping to timely introduce measures to stabilize market confidence before the market opens.

The Taiwan stock market has not yet reflected the negative news, and the risks remain unresolved.

Due to the fact that the Taiwan stock market is currently closed for consecutive holidays, it has not yet reacted to the significant decline in international stock markets caused by the new U.S. tariff policy. Additionally, the international market information has not yet fully clarified, resulting in a high level of uncertainty in the market.

The Financial Supervisory Commission pointed out that the international tariff and trade disputes are complex and may be difficult to clarify in the short term. In order to maintain the order of the stock market and protect the rights and interests of investors, it has been decided to introduce the following three major market stabilization measures in the short term.

Three temporary measures: Understanding how the Financial Supervisory Commission "protects the market"

1. Flexible Adjustment of Margin for Margin Financing and Securities Lending

When investors make supplementary payments for financing down payments or the margin difference for securities lending, they may, with the approval of securities finance companies or brokers, use other collateral that has market liquidity and can be objectively valued to make the supplementary payments, providing more flexibility and reducing the risk of forced liquidations due to market fluctuations.

2. Short selling of borrowed securities is restricted to the original "one-tenth".

Regarding the daily quantity of short selling orders, the Financial Supervisory Commission will significantly reduce the limit from the original maximum of 30% of the average trading volume of the stock over the past 30 business days to only 3%. This measure can effectively alleviate the downward pressure on stock prices. However, securities firm operations that respond to hedging demands, such as the issuance of put warrants, ETF management, and stock market making, are not subject to this restriction.

3. The margin ratio for securities lending has been significantly increased.

To raise the entry threshold for the market and strengthen risk control, the minimum margin requirement for short selling of listed and over-the-counter stocks will be increased from the original 90% to 130%. This adjustment is expected to curb excessive short-selling behavior and stabilize market confidence.

Financial Supervisory Commission: We will continue to conduct rolling reviews and take further action if necessary.

The Financial Supervisory Commission emphasized that although these three measures are only for five trading days, they will continue to review and adjust the relevant measures on a rolling basis according to international financial conditions and the actual situation of the Taiwan market in the future. The purpose is to ensure the stable operation of the Taiwan stock market and that investor confidence is not undermined in an unstable international environment.

This article discusses that the Taiwan stock market may face volatility after the holiday! The Financial Supervisory Commission takes emergency measures, with three key actions to stabilize market confidence. Originally appeared in Chain News ABMedia.