Domestic collateral ratio obligation waived for 3 months… Taiwan short-selling limit 30%→3%
Original headline국내 담보비율 의무 3개월 면제…대만 공매도 한도 30%→3%
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South Korea’s government will temporarily waive securities firms’ obligation to maintain a 140% collateral ratio on margin loans for three months, while Taiwan will cut its intraday short-sale order limit to 3% of trading volume from 30% and raise the minimum short-selling margin to 130% from 90%, with both measures effective Nov. 9. The Korean relief applies to brokers’ collateral-ratio requirement, not investors’ repayment duties, so it does not eliminate margin calls or automatically halt all forced selling. The steps are aimed at easing strain in leveraged and short-selling activity as authorities respond to market volatility. Investors should watch whether the eased collateral rule reduces forced deleveraging in Korean margin accounts and whether Taiwan’s tighter short-selling terms curb intraday selling pressure.
Muhabbit's AI wrote this summary in its own words from TokenPost's report and translated it from Korean. It can get details wrong, so check the source.
Named in this story
South Korea, Taiwan, Financial Services Commission, Lee Hyung-il