The Taiwan Stock Exchange (TWSE) has asked listed firms to disclose sensitive information earlier than was previously required to give investors quicker access to it and help them make more informed investment decisions.
Because block trading starts at 8 a.m. every day before the market opens at 9 a.m., listed companies are being asked to disclose sensitive information at least two hours before the market's opening, compared with only one hour at present, the TWSE said.
The new disclosure requirements will be implemented starting from September.
The TWSE said the earlier disclosure deadline will give investors the chance to weigh the information thoroughly before block trading begins.
Block trading refers to transactions involving a large number of equities being traded at an arranged price between two parties, sometimes outside of the open market, to reduce the trades' impact on share prices.
Information disclosure means that investors should enter the information into the TWSE's market observation post system (MOPS) within the disclosure time frame set by the exchange.
In addition, if the media reports sensitive information about a listed company that could move the stock's price, the company should issue a response on the TWSE's MOPS no later than two hours after the company learns of the report or is asked about it by the exchange.
If a listed company becomes aware of a report or receives an inquiry from the TWSE about it after 5 p.m. on a particular day, the company must issue a response at least two hours before the market opens the next day, the exchange said.
The TWSE said that if a listed company faces an emergency but cannot apply for a suspension in trading by the deadline, it must submit the suspension application by 7 a.m. the next day.
Companies listed on the TWSE are normally required to apply for suspensions in trading the next business day before the current business day ends.
Source: Focus Taiwan