Taiwan Stock Turnover Above NT$1 Trillion Raises Concerns Over Trading Curbs’ Effectiveness

The Taiwan Stock Exchange publishes alerts and imposes trading restrictions on shares showing unusual price or volume movements. The measures, commonly described as putting a stock “in confinement,” can lengthen order-matching intervals and restrict trading methods to curb overheating and speculation. With the TAIEX above 40,000 points and daily turnover exceeding NT$1 trillion, whether the existing thresholds still reflect the market’s scale has become a regulatory focus.

Market participants have recently questioned whether fixed trigger thresholds could undermine the system now that average daily turnover in Taiwan equities exceeds NT$1 trillion. Experts said the Taiwan Stock Exchange’s current measures still have a cooling effect on individual stocks and recommended that the Financial Supervisory Commission dynamically adjust the thresholds based on market structure, liquidity and volatility. The reports did not provide an exact date for the statistics.