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TWSE Tightens Settlement Rules with Higher Penalties for Brokerage Delays

Finance · Investment Banks/Brokers · economic_daily · 2026-11-04

The Taiwan Stock Exchange will implement higher penalties for delayed settlements starting November 9, introducing a tiered fee structure to enhance market oversight.

What Happened

Regulatory Update: The Taiwan Stock Exchange (TWSE) announced on the 4th that it has amended Article 137 of its operating rules to strengthen settlement oversight. The new regulations, effective November 9, increase the penalties for delayed settlements to ensure stricter compliance among brokerage firms.

Tiered Structure: The updated policy introduces a four-tier penalty system based on the value of the delayed settlement funds or collateral. This structured approach is designed to reduce the frequency of settlement delays and improve overall market efficiency.

Penalty Details: For delays within one hour, penalties range from NT$60,000 to NT$240,000 depending on the amount. For delays exceeding one hour, additional hourly penalties ranging from NT$20,000 to NT$80,000 will be applied, ensuring that significant delays face proportional consequences.

Strategic Goal: The TWSE stated that the primary objective is to enhance risk management and maintain market stability. By increasing the financial cost of non-compliance, the exchange aims to compel brokerages to improve their internal settlement controls and protect investor interests.

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