The FSC urges the TWSE to implement the market maker system on Taiwan Stock Exchange market to energize the stock market, and increase the transaction of 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 selection criteria for good-quality low liquidity stocks are listed for 1 year and meeting the transactional conditions (lower average daily trading volume, turnover rate and volatility) as well as the financial condition (no loss in financial statement in recent years, EPS higher than $2 and dividends distribution within one year). The TWSE will specify the quoting rules and incentive policies, including processing fee discounts or bonus. 

The FSC stated that the market makers will continue to provide reasonable offers through this system, increasing the opportunity to make successful deals among investors. When the liquidity of the subject stock increases, more market participants will be attracted to join, energizing the overall market and boosting market activities.