Major Reform in Fractional Share Trading! TWSE: Synchronized 9 AM Opening by Year-End, Matching Interval to Shorten to 1 Second by July 2027

Driven by the AI boom, Taiwan's stock market has continued to surge this year, with numerous high-priced stocks emerging. Retail investors are actively participating in market movements through fractional share trading. Today (8th), TWSE Chairman Lin Hsiu-ming confirmed during a Legislative Yuan Finance Committee hearing that the opening time for fractional share trading will be advanced to 9:00 AM, synchronized with regular share trading, and is expected to be implemented by the end of 2026. Furthermore, to improve trading efficiency, the matching interval for fractional shares will be significantly shortened from the current 5 seconds to 1 second, with implementation targeted for July 2027.

Currently, regular share trading opens at 9:00 AM, but fractional share trading only begins its first matching at 9:10 AM. This 10-minute gap has long been criticized by investors for creating price discrepancies and lower execution efficiency. As the market structure shifts with more high-priced stocks, demands for synchronizing fractional and regular share trading times have grown stronger.

Democratic Progressive Party (DPP) legislator Kuo Kuo-wen questioned during the hearing when fractional share trading would align with regular trading hours. In response, Chairman Lin clearly stated that the 9:00 AM opening for fractional shares will be implemented by the end of this year. Financial Supervisory Commission (FSC) Chairperson Peng Jin-long added that while changes to trading systems affect broad investor rights and must be handled with caution, the progress will be “as fast as possible.”

Regarding the matching interval, DPP legislator Lee Kun-cheng pointed out that the current 5-second interval lags behind the real-time matching of regular shares and asked when it could be shortened to 1 second.

In response to concerns that a July 2027 rollout might be too late, Chairman Lin acknowledged that while regulators desire faster implementation, the change requires IT system upgrades across all securities firms in Taiwan.

Lin emphasized, “System stability is paramount for major institutional changes. Shortening the matching interval requires system modifications by brokers, and we need further consultation with the Securities Association, prioritizing system stability.”