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Taiwan Regulator to Allow Margin Trading for Foreign Securities via Sub-brokerage by Q2 2027
Finance · Investment Banks/Brokers · economic_daily · 2026-08-25
Taiwan's FSC plans to permit margin trading for foreign stocks and ETFs through local brokers, with a 50% leverage cap and 160% maintenance requirement.
What Happened
Policy Overview: The Financial Supervisory Commission (FSC) of Taiwan has announced plans to allow securities firms to offer foreign currency margin trading for sub-brokerage accounts. This initiative aims to meet growing investor demand for leverage while supporting the government's goal of developing Taiwan into an Asian asset management hub.
Scope and Risk Controls: The initial rollout will be limited to U.S. stocks and ETFs, covering approximately 930 eligible securities. To mitigate risks associated with the lack of price limits in U.S. markets, the FSC has set a maximum margin ratio of 50% and a minimum maintenance requirement of 160%.
Implementation Timeline: Out of 25 local brokers currently offering sub-brokerage services, 19 meet the eligibility criteria to participate. Following a 60-day public comment period and necessary system upgrades, the new service is expected to launch as early as the second quarter of 2027.
Market Context: With U.S. equities accounting for over 70% of Taiwan's sub-brokerage trading volume, the FSC believes this move will enhance market flexibility. Regulators noted that while brokers are interested, participation remains subject to individual firm risk management assessments and regulatory compliance.