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Senior representatives from the Taiwan Stock Exchange (TWSE) travelled to Kuala Lumpur, Singapore and Hong Kong this week to present Taiwan’s updated securities borrowing and lending (SBL) rules to leading institutional investors, including sovereign funds, large pension funds and hedge funds.
From 1 February 2016, Brokers’ SBL rules were further relaxed to:
- Allow brokers to borrow securities directly from customers;
- Remove borrowing limits placed on customers;
- Expand the range of securities eligible for SBL; and
- Extend the roll-over limit from once to twice.
Additional adjustments to TWSE’s SBL rules that are currently in the pipeline include:
- Allowing all institutional investors to participate in TWSE SBL system;
- Relaxing existing percentage restriction on daily short sales; and
- Lowering the collateral ratio for fixed rate/competitive bidding transactions within TWSE’s SBL system.
On the sidelines of the “Taiwan Corporate Day: The Electronic Vehicle” events thatp were held in the three cities from 7-9 March 2016, Dr. Naikuan Huang, TWSE Senior Executive Vice President, said “The recent adjustments to TWSE’s SBL rules are the latest steps to be implemented as part of Taiwan’s ongoing reform of its trading rules and market structure. By sharing these developments with foreign institutional investors in Hong Kong, Malaysia and Singapore, we illustrate the increasing range of investment options and strategies now available in the Taiwan market.”
The “Taiwan Corporate Day: The Electronic Vehicle” events were jointly organized by TWSE, Cathay Securities Corporation and Maybank Kim Eng. A number of TWSE-listed companies from across Taiwan’s electronic automotive industry participated, including Lite-On Technology (2301), Tong Yang Industrial (1319), WPG Holdings Limited (3702), Unimicron Technology Corporation (3037), Compal Electronics Inc. (2324), eMemory Technology Inc. (3529), and Changs Ascending Enterprise (8038).
