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TPEx Overhauls Emerging Stock Market Rules with New 'Trading Halt' and Price Stability Measures
Finance · Investment Banks/Brokers · economic_daily · 2026-09-02
The Taipei Exchange is introducing a tiered trading halt mechanism and stricter price controls for emerging stocks to enhance market stability and investor protection.
What Happened
Regulatory Overhaul: The Taipei Exchange (TPEx) has announced significant amendments to its emerging stock trading regulations, introducing a new "temporary trading halt" mechanism and strengthening existing price stability measures. These changes will be implemented in phases, with full integration scheduled between 2026 and 2027.
Trading Halt Mechanisms: Starting February 2027, stocks experiencing a 30% price swing will face a 30-minute "temporary halt," while a 50% swing will trigger a halt for the remainder of the session. Companies hitting the 50% threshold will be required to disclose their financial and operational status before the next trading day begins.
Market Maker Obligations: Market makers will be granted more flexibility, with the continuous quote input deadline extended to ten minutes following a temporary halt. Additionally, the grace period for market makers to address inventory shortages for stocks that have triggered a full trading halt has been extended to three business days.
Price Controls and Compliance: The TPEx will now apply price control mechanisms to emerging stocks from their first day of trading, rather than excluding the initial five-day period. Furthermore, new rules prohibit trade corrections for stocks that have triggered halt mechanisms, ensuring greater market integrity and investor protection.