Commodities market 10% fluctuation limit starts June
The commodities market will widen the daily fluctuation limit to 10 percent on June 1, including the stock index, stock class (including domestic stocks ETF), commodities and options, in conjunction with the stock fluctuation limit changes made recently. The package will be advantageous in reflecting market statistics, improve market efficiency and increase Taiwan’s commodities market’s competitiveness on an international level.
Stock futures and options (excluding underlying securities for ETF) margins rate range will increase to three ranges. The third range’s clearing margin, maintenance margin, and initial margin rates will become 15 percent, 15.53 percent and 20.25 percent respectively. Other products’ margin calculations remain the same. Traders should be mindful of risk management and avoid margin calls or reversal standards conversion. Market orders’ turnover range will also increase.
The Taiwan Futures Exchange (TAIFEX) will be holding conferences to explain the regulations and measures regarding the commodity fluctuation limit changes in mid-April. The TAIFEX website (www.taifex.com. tw) will also provide a section for traders to look up the new daily commodities fluctuation limit.