The FSC is urging the TWSE to implement a market maker system on Taiwan’s centralized stock exchange to energize the stock market and increase transaction volume in good-quality, low-liquidity stocks. It is expected to bring positive effects to the domestic capital market. The plan is to be implemented by the end of June 2021.

A stock market-maker system will introduce the market makers (quoting buy and sell prices) and participants for transaction incentives (actively participating in transactions) among brokerage firms. The market making operates by cross selection among all stocks in combination with good-quality, low-liquidity stocks. The term “good-quality, low-liquidity stock” shall mean a stock that has been listed at least one year, meets certain transactional conditions (has relatively low average daily trading volume, turnover rate and volatility), and is issued by a company that meets certain financial condition (has not reported a loss in its most recent annual financial report, its EPS is greater than NT$2 per share, and has made an earnings distribution in the most recent year). The TWSE will specify the quoting rules and incentive policies, including processing fee discounts and bonuses.