Extension of stock trading hours not a 'priority': FSC head

Taipei, July 8 (CNA) A plan to extend trading hours on the local stock market is currently not a "priority" for the Financial Supervisory Commission (FSC), FSC head Peng Jin-lung (彭金龍) said Wednesday, adding that the commission will not extend trading hours anytime soon.

Speaking at a legislative hearing, Peng said an extension of trading hours from the current range of 9 a.m.-1:30 p.m. will not be implemented before Taiwanese society reaches a consensus.

"It is not a priority for the FSC to extend trading hours now, and the commission has no timeframe to do so," Peng told lawmakers, "Any change in trading hours needs a long time for discussions."

Last week, Taiwan Stock Exchange (TWSE) Chairman Sherman Lin (林修銘) said at another legislative hearing that the TWSE is studying whether to extend local stock trading hours to align with international standards as trading hours in Taiwan are shorter than other markets.

In Hong Kong, trading starts at 9:30 a.m. and finishes at 4 p.m. (local time) with a break from 12 p.m. to 1 p.m. In Tokyo, trading hours are 9 a.m. to 3:30 p.m. with a break between 11:30 a.m. and 12:30 p.m.

In Seoul, trading begins at 9 a.m. and ends at 3:30 p.m. without a break.

Lin said the TWSE is studying an extension of Taiwan's trading hours to finish at 3:30 p.m., while many brokerages favor no break even after an extension. He said the discussions with brokerages about the matter are ongoing.

An extension in trading hours is expected to boost trading volume and the TWSE will evaluate how to enhance the resilience of information technology related to stock trading, Lin added.

Meanwhile, Lin said Wednesday that odd lot trading, which allows purchases of fewer than the standard block of 1,000 shares and makes high-priced stocks more accessible, will start at 9 a.m. in line with the broader market at the end of this year.

Since Oct. 26, 2020, Taiwan has permitted odd lot trading to attract interest from small retail investors and eventually push up turnover. Currently, odd lot trading starts at 9:10 a.m. every session, 10 minutes after the market opens.

The TWSE has said such arrangements seek to avoid interfering with trading of the standard block, while many small retail investors have asked the exchange to start odd lot trading at 9 a.m. when the market opens.

In addition, Lin said to further boost market liquidity and trading efficiency, the TWSE will shorten matching intervals for odd lot trading from the current five seconds to one second, starting from July 2027.

In 2022, the matching interval for odd lot trading was shortened from three minutes to one minute. In 2024, the matching interval was shortened further to the current five seconds.