Taiwan FSC Weighs Trading-Restriction Exemptions That Could Spare MediaTek and Other Large-Cap Stocks

The Taiwan Stock Exchange’s trading-disposition regime was designed to curb unusual price and volume movements and reduce settlement risk. Stocks that meet warning criteria may be moved to interval trading, with investors required to provide funds or securities in advance. MediaTek, with a market capitalization of about NT$5.5 trillion, was nevertheless restricted after short-term volatility. It became the largest company by market value ever placed under such measures in Taiwan, fueling debate over whether the rules unfairly penalize fundamentally sound large-cap stocks.

The exchange announced on May 6, 2026, that MediaTek would be subject to the measures for 10 trading days from May 7 through May 20, with trades matched once every five minutes. FSC Chairman Peng Jin-lung said on May 7 that the Securities and Futures Bureau and the exchange were considering exemptions based on market capitalization, price-to-earnings ratios and other criteria. On June 10, the FSC proposed a two-stage overhaul: adjusting warning thresholds and assessing a shorter restriction period in the near term, followed by a comprehensive review over the medium to long term.