(April 6): Taiwan’s financial regulator has announced tighter short-selling controls to stabilie the market amid Donald Trump’s aggressive tariffs.

The new measures, effective April 7, will limit the volume of intraday securities lending orders to 3% of the average daily trading volume over the previous 30 days, the Financial Supervisory Commission said in a statement on Sunday. That is reduced from 30% previously.

It will also raise the minimum margin requirement for short-selling activities from 90% to 130%, the statement says. The changes will be effective from April 7 to April 11.

“The US’ recent announcement on reciprocal tariffs has caused a sharp shock in the global stock markets, and Taiwan’s market had not yet reacted given it was shut for holidays,” said the FSC in a statement. “Global markets are still digesting the information, which will surely bring significant uncertainties to Taiwan’s market.”

The FSC said it will continue to closely monitor the situation and release various stabilization measures when necessary.

Taiwan’s regulators had adopted similar short-selling measures in September 2022, after a bout of volatility in global markets, driven by concerns about the Federal Reserve’s aggressive rate hikes and recession fears.

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