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Taipei Exchange to Implement 'Cooling-Off' Period for Emerging Stocks Starting February 2026
Finance · Investment Banks/Brokers · cnyes · 2026-09-03
The Taipei Exchange will introduce a 30-minute cooling-off period for emerging stocks with 30% volatility to curb extreme price swings and protect investors.
What Happened
Cooling-Off Mechanism: The Taipei Exchange is introducing a new cooling-off mechanism to curb extreme volatility in the emerging stock market. If a stock's weighted average price fluctuates by 30% during the session, trading will be suspended for 30 minutes, with a total halt until market close if the fluctuation reaches 50%.
Enhanced Disclosure: Companies whose stocks trigger the 50% suspension threshold are now required to disclose their financial and operational status before the next trading day. This measure is designed to ensure investors have timely access to critical information and mitigate risks associated with sudden price movements.
Market Maker Adjustments: In conjunction with the new rules, the exchange is relaxing the deadline for market makers to provide continuous quotes and requiring clearer documentation of pricing logic. Additionally, the grace period for market makers to address inventory shortages following a trading halt has been extended from one to three business days.
New Listing Controls: To strengthen market integrity, the exchange is removing the price control exemption for the first five days of a new stock's listing. Effective February 2026, all orders for newly listed stocks must remain within a 30% range of the best bid-ask average, and account adjustments will be prohibited on the day of a suspension.