TAIWAN: TWSE Implements Continuous Trading

Tuesday March 24 2020

The Taiwan Stock Exchange (TWSE) announced that it is implementing new continuous trading effective from 23^rd March 2020.

Applicable Time : Orders are executed on a continuous basis during intraday regular trading sessions which run from 9:00 am to 1:25pm. Orders are still matched by call auction at the end of the opening sessions (8:30am-9:00am) and closing sessions (1:25pm-1:30pm).

Order Type : New order types such as market order, Immediate or Cancel (IOC), and Fill or Kill (FOK) are available only during the continuous trading sessions. These provide investors with more options when placing orders.

• Market Order: Applicable during continuous trading session. A market order executes the investor’s desired order volume at the best available price. Investors are not required to enter the price.
• Immediate or Cancel (IOC): Applicable during continuous trading session. An IOC order must be immediately filled and any unfilled portion of the order is canceled.
• Fill or Kill (FOK): Applicable during continuous trading session. A FOK order must be filled in its entirety or canceled (killed).

Intra-day Volatility Interruption: In order to limit extreme price fluctuation, intra-day volatility interruption is in place. Whenever the trading system detects that the potential execution price of a specific stock will fall out of a specified range (+/-3.5%) as compared to the weighted average traded price over the preceding five minutes (reference price), matching for that stock is postponed for two minutes.

Click on the above link for further information.