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TWSE Overhauls Trading Rules: Tick Size for High-Priced Stocks Cut to NT$1 and Default Penalties Tightened

Finance · Investment Banks/Brokers · economic_daily · 2026-08-25

The Taiwan Stock Exchange has approved major regulatory changes, including reducing the tick size for stocks over NT$1,000 to NT$1 and extending the monitoring period for defaulting investors to five years.

What Happened

High-Priced Stock Tick Size Reform: To improve liquidity and price discovery, the Taiwan Stock Exchange (TWSE) has decided to reduce the tick size for stocks priced at NT$1,000 or higher from NT$5 to NT$1. This adjustment is expected to enhance price continuity and reduce transaction costs for investors trading high-value shares.

Stricter Default Management: The exchange is significantly tightening its default settlement management by extending the monitoring period for first-time defaulters from one year to five years. Investors resuming trading within this five-year window will face mandatory pre-collection requirements, with repeat offenders subject to a 30-day pre-collection period.

Warrant Issuance Controls: To mitigate market and credit risks, the TWSE has updated its warrant listing criteria, including calculating the net worth percentage for issuance limits at 90% and raising the minimum threshold for circulating units. These measures are designed to moderate warrant issuance and bolster overall market stability.

New Listing Approvals: The TWSE board also approved the listing applications for NPIC Cayman and Dongqing Technology. These regulatory amendments and listing approvals are pending final review and authorization by the competent authorities before taking effect.

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