Investors Beware! TWSE: Suspended Stock Trading Halt Shortened to 5 Days, Matching Interval Reduced to 2 Minutes – Effective August 10

The Taiwan Stock Exchange held an emergency press conference this afternoon (3rd) to announce revisions to its 'Rules on Public Announcement of Monitored and Regulated Securities.' To improve trading efficiency and maintain market order, starting August 10, 2026, the suspension period ('trading halt') for regulated stocks will be significantly shortened, and the matching frequency will be uniformly accelerated from the current 5-minute or 20-minute intervals to approximately every 2 minutes. Additionally, the TWSE will relax the monitoring criteria for high-priced stocks and establish a semi-annual review mechanism.

Amid a sharp correction in the Taiwan stock market recently, several legislators raised concerns that the old regulatory regime had become a liquidity killer, preventing investors from selling during downturns. Today, the TWSE announced that after multiple reviews since the system's establishment in 1995, it has decided to revise the rules in response to recent market changes and public feedback, focusing on three main areas:

1. Shortened Suspension Period

General Regulation: For securities subject to first-time or subsequent regulatory announcements, the suspension period will be reduced from the previous 10 trading days to just 5 trading days.

Excessive Day-Trading Regulation: If a security under suspension is also flagged for 'excessively high day-trading volume,' the suspension period will be shortened from 12 trading days to 7 trading days.

2. Accelerated Matching Intervals

Previously, order matching for suspended ordinary trading stocks occurred every 5 or 20 minutes. Under the new rules, referencing the existing 'instant price stabilization measures,' all such stocks will now be matched approximately every 2 minutes, significantly improving liquidity.

3. Relaxed Monitoring Criteria for High-Priced Stocks

To prevent high-priced stocks from frequently triggering monitoring thresholds due to normal price fluctuations, the criterion based on 'price difference between closing prices over six consecutive trading days' has been revised. Specifically, the rule now applies only when the closing price exceeds TWD 1,000 and the 6-day price difference reaches at least TWD 300 (previously TWD 100). For stocks priced above TWD 2,000, each additional TWD 1,000 forms a new tier, increasing the price difference threshold by TWD 150 per tier (e.g., for stocks priced between TWD 2,000 and 3,000, the threshold becomes TWD 450, and so on).

The new system takes effect on August 10. For securities still under suspension as of that date, the TWSE stated that any stock already suspended for 5 full days (or 7 days for those with day-trading penalties) before August 10 will be immediately released from restrictions starting August 10. If a stock has only been suspended for 3 days as of August 10, it will remain under restriction until it completes the full 5-day (or 7-day) period.

Except for securities undergoing changes in trading methods (including batch auctions), all other regulated stocks will switch to approximately every 2-minute matching starting August 10.

The TWSE emphasized that going forward, the monitoring and regulation framework will adopt a 'regular review mechanism,' with comprehensive evaluations conducted every six months to flexibly respond to evolving domestic and international financial conditions.