Lin Tzong-yeong (林宗勇), chairman of Securities and Futures Commis-sion (證期會), said yesterday that when trading hours hour are extended early next year, a "circuit breaker" mechanism could also be implemented at the same time.
In addition, Lin said, because an extension of trading hours will likely affect society's working habits, any lengthening of hours would have to be approved by the Executive Yuan.
Still, Lin's policy statements are just that -- statements -- and the situation could change after the KMT hands over power to the DPP on May 20. Earlier in the week, Lin said longer trading hours would be implemented by next February or March. But whether they are or not will likely be decided by the new premier and the new minister of finance, analysts said.
Lin said the schedule for the implementation of extended trading hours was set by Lien Chan (
As to whether the daily 7 percent up or down limit on stock price fluctuations should be expanded, Lin said that issue required further study.
It may not be necessary to adjust the current policy, he said. Lin said that other markets that did not have trading limits have implemented new restrictions, and those that have had trading bands have begun to narrow the range.
As to the idea of a "circuit breaker" that could be used to prevent sudden drops in the market, Lin said such a mechanism would be considered at the same time the matter of daily stock price limits is taken up.
After Lien Chan instructed the SFC in February to study extending trading hours within 12 months's time, relevant agencies were asked to have their feasibility reports completed by the end of April.
The SFC, according to Lien's scheduled, would then submit its completed proposal by the end of June to the minister of finance.
Adding the time it takes to modify and test computers at the Taiwan Stock Exchange, the earliest longer trading hours could be implemented would be February or March.
But because longer hours could affect the working lives of millions of people, the final decision has to be made by the Executive Yuan.
Lin stressed that other than the timing of the trading hours extension, any relevant issue and conditions could be fully discussed by all parties, and that public hearings would be held.
But Lin was uncompromising on the issue of Saturday trade. He said that Saturday sessions must be closed for Taiwan's markets to be internationalized.
Recently the SFC held a meeting to discuss longer trading hours, Lin said. The Taiwan Stock Exchange and other agencies will complete their feasibility studies on the issue before the end of this month.
The Association of Securities Brokers (券商公會) is also planing to conduct a survey on expanding the daily trading band. After that survey is complete, the SFC will complete an evaluation report before the end of June, which will then go to the new minister of finance.
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