Domestic and overseas stock markets have recently regained stability and most countries have discontinued short selling restrictions. Also, Taiwan has been quite successful in its fight against COVID-19, and relaxed anti-pandemic measures on 7 June 2020. Moreover, uncertainties in international markets are on the wane. Accordingly, the FSC on 9 June 2020 announced plans to take the following measures:

1.Reinstatement of old cap on total SBL short sale volumes during trading sessions: The cap on total SBL short sale volumes during trading sessions, which had been lowered to “10% of the average trading volume in any given security over the preceding 30 trading days” on 19 March 2020, was adjusted back to the previous 30% on 10 June 2020.

2.Discontinuation of policy allowing a broader range of collateral to meet margin calls: The FSC had previously announced on 19 March 2020, investors that have obtained the creditor''s consent would be allowed to meet a margin call (for either a margin purchase or a short sale) by posting any collateral that has market liquidity and can be objectively and reasonably valued. This measure was discontinued from 10 June 2020.

3.Cancellation of the restrictions providing that, for a security that closes down by 3.5% or more on any given trading day, regular short selling and SBL short selling of that security will not be allowed on the following day at or below the previous day''s closing price: The FSC had previously announced that, beginning from 19 March 2020, when a security that closes down by 3.5% or more on any given trading day, on the following trading day the investors are not permitted to engage in regular short selling and SBL short selling of borrowed securities at a price lower than the previous day''s closing price, and furthermore, if that same security again closes down by 3.5% or more on the next trading day, this same restriction will continue to apply. The restrictions mentioned above were eased as of 9 June 2020.

4.The FSC will continue to closely monitor the state of the fight against COVID-19 around the world, the latest political and economic developments, and the stability of financial markets, and will act in a timely manner to preserve stability if there is any irrational drop in stock prices.