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Taiwan Stock Exchange to Narrow Tick Size for High-Priced Stocks to NT$1 by July 2027
Finance · Investment Banks/Brokers · economic_daily · 2026-08-25
The TWSE board has approved a reduction in the tick size for stocks priced above NT$1,000 from NT$5 to NT$1, aiming to improve liquidity and price efficiency.
What Happened
Tick Size Reform: The Taiwan Stock Exchange (TWSE) board has approved a revision to its operating rules, reducing the tick size for stocks priced at NT$1,000 or higher from NT$5 to NT$1. This change is scheduled to take effect in July 2027, with the goal of enhancing price continuity and market efficiency for high-priced equities.
Market Liquidity Boost: TWSE officials stated that the adjustment is a response to the growing number and trading volume of high-priced stocks. By narrowing the tick size, the exchange aims to provide investors with greater price flexibility, lower transaction costs, and bridge the gap between round-lot and odd-lot trading.
Stricter Default Management: The exchange also tightened its pre-collection requirements for investors following a default event. Under the new rules, investors who default will face stricter pre-collection periods for up to five years, with repeat offenders facing extended pre-collection requirements of up to 30 trading days to mitigate systemic risk.
Warrant Regulation Updates: Additionally, the TWSE board approved amendments to the listing review criteria for warrants. These changes include adjustments to capital adequacy calculations and higher minimum issuance requirements after voluntary cancellation, aimed at better managing issuer risk and maintaining market stability.