Taiwan’s Emerging Stocks to Halt Trading for 30 Minutes After 30% Move, Starting February 22

Taiwan’s GreTai Securities Market will add a new trading-pause mechanism for emerging stocks after sharp price swings, with the changes taking effect on February 22.

Under the revised rules, a stock that rises or falls at least 30% from the previous business day’s weighted average price will temporarily stop trading through the quoting and negotiated-order system for 30 minutes. The system will then automatically resume trading.

The market will retain its existing full suspension rule for more extreme moves. If a stock reaches a gain or loss of at least 50% after trading resumes, trading will stop until the end of the day. GreTai will require the issuer to disclose its financial and business condition before trading begins the following business day, giving investors more timely information.

The revisions also change the obligations of recommended securities dealers that provide market-making services. After a stock meets the temporary-pause threshold, dealers will have 10 minutes, rather than three, to re-enter continuous quotes during the resumption period. Dealers must also specify the basis for quote decisions and their controls in internal procedures. For stocks that meet the full-suspension threshold, the period for correcting an insufficient inventory position will increase from one business day to three.

Other measures apply at different times. Investor order-price controls will cover the first five business days after an emerging stock is listed, beginning September 21. Rules concerning issuer disclosures after a suspension and applications for accounting transfers take effect from the announcement date. The new 30-minute pause and revised market-making obligations begin February 22.