Taiwan Stock Exchange (TWSE) officials have been doing the rounds in Asia to promote the country’s new securities borrowing and lending rules.

Executives from the bourse met with a host of institutional investors this week in Hong Kong and Singapore to explain recent rule changes.

New measures expanding the scope of shares used for short selling were introduced back in February.

The changes also allow brokers to borrow securities directly from customers while certain borrowing limits have been removed.

Naikuan Huang, executive vice president at TWSE, said the adjustments form part of Taiwan’s ongoing reform of its trading rules and market structure.

“By sharing these developments with foreign institutional investors in Hong Kong, Malaysia and Singapore, we illustrate the increasing range of investment options and strategies now available in the Taiwan market.”

At the end of 2014, 82 securities firms had contracts with the TWSE to operate in the market.

Among these, 34 engaged only in securities brokerage transactions; 35 ran a combination of securities brokerage, dealership, and securities underwriting businesses; and 35 also engaged in margin trading business activities. 

The numbers are expected to continue growing. 

Offshore overseas Chinese and foreign investors need to appoint a domestic agent representative, or custodian bank, to apply to TWSE for registration.

At the end of June 2015, the total market capitalisation of the 862 companies listed on TWSE amounted to $879bn

Stats from DataLend – which tracks securities lending and borrowing activity – show that there was an $9bn worth of equity and fixed income securities out on loan every day in Taiwan on average in the 12 months to February.

That was out of a total average daily inventory $46bn. The average fee to borrow is 169bps, or 1.69%.