The Financial Supervisory Commission (FSC) will decide in February if the current daily price fluctuation limit of stocks should be increased from 7% to 10%. That’s the word from FSC Chairman William Tseng on Wednesday.
Tseng said that if the daily fluctuation limit is widened to 10%, the collateral maintenance ratio and threshold to halt trading on a single stock will also be adjusted accordingly.
The FSC will continue to evaluate if the new daily fluctuation limit will impact individual investors and come up with complementary measures for the new rules. The FSC will make the plan public as early as February.
The last time the government widened the daily upward and downward limit was when it increased the limit from 5% to 7% in October 1989.