Aligning with TWSE, GreTai Introduces Three New Mechanisms for Suspended Stocks Starting August 10: Shorter Suspension Periods, Matching Every 2 Minutes

Legislators recently criticized the volatility in Taiwan's stock market, pointing out that stocks under trading restrictions are nearly impossible to sell during downturns, calling them 'liquidity killers.' In response, the securities F4 held emergency meetings to discuss countermeasures. Today (3rd), the GreTai Securities Market (GTSM) announced it will align with the Taiwan Stock Exchange (TWSE) and launch three major reforms. The new rules for monitoring and trading suspensions will be fully implemented starting August 10, 2026 (Year 115).

The core elements of the new mechanism include significantly shortening the suspension period to five trading days, standardizing the matching interval to approximately every two minutes, and relaxing the price spread criteria for high-priced stocks. These changes aim to reduce market volatility risks while balancing liquidity and investor rights under the new policy launching on August 10.

Taiwan's stock market has recently experienced significant fluctuations. Some stocks under trading restrictions face severe limitations under the 'lock-up' mechanism, making it especially difficult to sell during price drops. This has triggered strong calls for reform of the current trading suspension system. Legislator Wang Shih-Chien recently pointed out in the Legislative Yuan that the existing management mechanism is out of sync with market realities, prompting the securities F4 to hold intensive meetings to discuss solutions.

In response to widespread public concern, GTSM held a press conference today to announce a comprehensive review and revision of its monitoring and trading suspension regulations.

GTSM emphasized that these highly anticipated reforms will officially take effect on August 10, 2026. The new measures are designed to respond to recent changes in market structure and incorporate feedback from various stakeholders. After comprehensive evaluation, the optimized system aims to foster a more efficient, fair, and transparent capital market environment.

Among the four key changes launching on August 10, the adjustment of the suspension period has drawn significant market attention. Previously, securities subject to initial or repeated surveillance faced a 10-trading-day suspension period. Under the new policy, this will be reduced to five trading days. For stocks with excessively high same-day trading (day-trading) ratios, the period will be adjusted to seven trading days.

Additionally, the matching intervals for regular trading securities will undergo a major transformation. Previously, batch matching occurred at irregular intervals of about 5 or 20 minutes. Under the new system, matching will be standardized to approximately every two minutes, significantly enhancing market activity and preventing excessive liquidity freeze.

Beyond shortening suspension periods and matching intervals, the reforms also include a rationalized revision of the price spread thresholds for triggering monitoring alerts. A stock will only be subject to monitoring if its closing price exceeds NT$1,000 and the price range over the past six trading days is at least NT$300. For stocks closing above NT$2,000, the threshold increases by NT$150 for every additional NT$1,000 in price.

Simultaneously, GTSM will establish a formal periodic review mechanism alongside the August 10 policy launch. Reviews will be conducted every six months in principle, allowing flexible adaptation to rapidly changing financial environments.