FinanceBRIEF

Taiwan Stock Exchange Cuts Disposition-Stock Period to 5 Days, Speeds Matching to Every 2 Minutes From August 10

林紀旭 James LinEditor-in-Chief
Published · Updated
According to a Central News Agency (CNA) report, the Taiwan Stock Exchange (TWSE) will implement new disposition-stock rules on August 10, 2026, shortening the standard disposition period from 10 to 5 business days and quickening intraday order matching from roughly every 5 or 20 minutes to about every 2 minutes. Stocks also flagged for a high day-trading ratio see their disposition period cut from 12 to 7 business days, per CNA and Commercial Times (CTEE) reports.

When Do the New Rules Take Effect?

The Taiwan Stock Exchange (TWSE, 台灣證券交易所) will roll out the revised disposition-stock (處置股) rules on August 10, 2026, according to a Central News Agency (CNA) report dated August 3, 2026, which states the "new rules will take effect from August 10." The Commercial Times (CTEE) independently confirmed the same date, reporting that the revised measures "will be implemented starting August 10," alongside the same period and matching-interval changes described below.

How Are the Basic Disposition Period and Matching Interval Being Adjusted?

Per CNA, for securities placed under disposition for the first time, or a second time or more, the disposition period is being cut from 10 business days to 5 business days. At the same time, the exchange is speeding up how often orders are matched during a disposition period: matching, which currently occurs "about every 5 or 20 minutes," will be adjusted to occur about every 2 minutes, CNA reported.

CTEE's report corroborates both figures, stating that for securities disposed for the first time or a second-plus time, the period is "shortened from 10 days to 5 business days," and that matching operations — referencing the existing instantaneous price-stabilization mechanism's pause interval — will be "adjusted to about every 2 minutes," effective August 10.

ChangeBeforeAfter
Standard disposition period (1st / 2nd-plus time)10 business days5 business days
Matching interval during disposition~every 5 or 20 minutes~every 2 minutes

Does the Disposition Period Differ When Day-Trading Ratio Is Also Flagged?

Yes. CNA reports that if, within the period used to calculate the disposition trigger, a security has also been separately flagged for an "attention" notice due to an excessively high day-trading ratio, its disposition period is cut from 12 business days to 7 business days.

CTEE reports the identical figures, describing securities that are "disposed of, and within the calculation period for the disposition trigger also had an attention notice issued for excessive day-trading ratio," with the disposition period set at "7 business days (previously 12 business days)."

ChangeBeforeAfter
Disposition period with concurrent high day-trading-ratio flag12 business days7 business days

How Is the Price-Volatility Threshold for an "Attention" Notice Changing?

Under the revised Item 11 of the attention-stock criteria, CNA reports that a security only becomes eligible for this notice if its closing price exceeds NT$1,000 and the price spread between its highest and lowest closing prices over the most recent 6 business days reaches NT$300 or more.

That replaces the prior rule, under which any listed security with a 6-business-day closing-price spread of NT$100 or more could trigger the notice — with the spread threshold rising by NT$25 for every NT$500 price tier, per CNA.

TWSE Deputy Vice President Du Hui-chuan (杜惠娟) illustrated how the new tiers work: for a stock priced between NT$1,000 and NT$2,000, the spread standard is NT$300; for a stock priced between NT$2,000 and NT$3,000, the spread standard is NT$450, "and so on," she said, as quoted by CNA.

ItemOld RuleNew Rule
Closing-price conditionNot requiredMust exceed NT$1,000
6-business-day price-spread threshold≥ NT$100≥ NT$300
Spread increment (old rule)+NT$25 per NT$500 price tier
Example: stock priced NT$1,000–2,000Spread standard NT$300
Example: stock priced NT$2,000–3,000Spread standard NT$450

When Was This System First Established, and What Is the Official Rationale?

According to CNA, Deputy Vice President Du Hui-chuan said the attention-and-disposition rules were "established in 1995," with the purpose of "appropriately reminding investors of trading risk when a security's price rises or falls abnormally."

CTEE's report places the same origin in "the Republic of China year 84" (1995), describing the attention-and-disposition system as "a neutral measure for maintaining market order" that "has undergone multiple reviews and revisions in response to market changes at each stage" since then.

What This Means

Across both CNA and CTEE, the changes point in one direction: TWSE is compressing the time and widening the price-based entry conditions around its disposition mechanism at once. The standard disposition window is being halved (10 to 5 business days) and the day-trading-linked window is being nearly halved as well (12 to 7 business days), while matching during disposition speeds up roughly two-and-a-half to tenfold in frequency (from every 5–20 minutes to every 2 minutes). At the same time, the bar for triggering an Item 11 attention notice is being raised — from a flat NT$100 spread threshold to a combined NT$1,000 closing-price floor plus a NT$300 spread threshold. Per Du Hui-chuan, this sits within a mechanism first set up in 1995 that CTEE says has been revised repeatedly as market conditions evolved, with the August 10 changes being the latest iteration.

📊 Evidence

FAQ

What was the original purpose of the attention-and-disposition system?

According to CNA, quoting TWSE Deputy Vice President Du Hui-chuan, the rules were established in 1995 to appropriately remind investors of trading risk when a security's price rises or falls abnormally.

When do the new disposition-period and matching-interval rules take effect?

August 10, 2026, according to both CNA and Commercial Times (CTEE) reports.

📎 Sources

  1. cna.com.tw
  2. ctee.com.tw
林紀旭 James LinEditor-in-Chief

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