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Taiwan Stock Exchange Expands Warrant Underlying Assets to Include Innovation Board Stocks

Finance · Investment Banks/Brokers · economic_daily · 2026-10-05

The TWSE has updated its warrant issuance rules, allowing Innovation Board stocks to serve as underlying assets to boost market diversity and liquidity.

What Happened

Regulatory Updates: The Taiwan Stock Exchange (TWSE) has implemented optimizations for the warrant market, including a reduction in issuance caps to enhance overall product quality. Additionally, adjustments have been made to the self-cancellation ratios for issuers to ensure sufficient liquidity for market quoting.

Innovation Board Integration: In a move to boost the Innovation Board, the TWSE has officially permitted stocks listed on this board to be used as underlying assets for warrants. This follows previous efforts to remove qualified investor restrictions and increase investment quotas for mutual funds, further aligning the board with the main market.

Enhanced Market Diversity: The inclusion of Innovation Board stocks as warrant underlying assets provides investors with a broader range of financial instruments. This expansion is expected to increase market participation and visibility for companies listed on the Innovation Board.

Maturing Trading Environment: With existing support for margin trading, securities lending, day trading, and odd-lot trading, the Innovation Board is becoming increasingly robust. The addition of warrant eligibility marks another milestone in the board's development, aiming to attract more capital and improve overall market efficiency.

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