In order to improve the financing environment of the Taiwan Innovation Board (TIB), the Financial Supervisory Commission (FSC) requested the Taiwan Stock Exchange (TWSE) to study and propose multiple measures related to the TIB, including allowing credit trading of stocks on the TIB. Accordingly, the FSC proposed to amend Articles 2 and 8 of the “Standards Governing Eligibility of Securities for Margin Purchase and Short Sale,” with the effective date scheduled on January 1, 2024. The advance notice period for the draft amendment to the aforementioned articles has now expired and the amended version will be released soon. The key points of the amendment are as follows:
1.        The review criteria for margin purchase and short sale of TWSE- listed stocks will apply to stocks listed on the TIB: the ordinary stocks listed on the TIB will be included in the credit trading subjects and the review criteria for margin purchase and short sale of TWSE-listed stocks will apply.
2.        The review criteria for continuation of qualifications of TIB stocks after being changed to general TWSE- listed stocks: in order to ensure the continuity of margin purchase and short sale qualifications of TIB stocks after being changed to general TWSE-listed stocks, the same requirement on the continuity of margin purchase and short sale qualifications for TPEx-listed stocks which are changed to TWSE-listed stocks will apply, except for those with an excessive concentration of shareholdings.
The FSC stated that the amendment to include TIB stocks as targets for margin purchase and short sale may enhance the liquidity of TIB stocks and improve investors’ flexibility in stock operations. In the future, the FSC will continue to supervise the TWSE on the study of external advice on market practices, in order to optimize the financing environment of the TIB, attract more new start-up enterprises to list their stocks and promote the vitality and stable growth of the TIB.


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