The Financial Supervisory Commission (FSC) is studying the possibility of relaxing day-trading rules to allow investors to conduct such trading of all stocks listed on the local equity market, FSC Chairman William Tseng (曾銘宗) said yesterday.
Tseng made the remarks when asked about a possible relaxation in day-trading rules at a meeting of the legislature’s Finance Committee.
Investors had been allowed to engage in day trading — whether buying first and selling later or selling first and then buying later on the same day — of any of 200 stocks since last year. Before the change, day trading was allowed only for margin trading or short selling.
In June, the commission relaxed the regulations to allow investors to conduct day trading on 400 stocks and about 30 exchange traded funds (ETFs) trading on the main board and the over-the-counter (OTC) market as part of its efforts to lure investors to return to the market and eventually boost daily turnover.
The 400 stocks which are now eligible for day trading account for 89 percent of the combined market capitalization of the main board and the OTC market, while the other 1,100 stocks that are not eligible for day trading make up 11 percent of the total market cap, according to the commission.
Trading volume on the local bourse dropped to NT$74.52 billion (US$2.28 billion) yesterday from NT$81.69 billion on Tuesday. Trading volume was NT$70.61 billion on Monday.
Commenting on the thin turnover, Tseng said that the local equity market has been haunted by fears over a possible interest rate hike by the US Federal Reserve, and such low trading interest could continue until the middle of next month, when the Fed holds a policymaking meeting to decide its monetary policy.
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