Securities trading on typhoon days

Each time a typhoon approaches, Taiwanese inevitably find themselves embroiled in a debate over whether a typhoon day off should be declared. The government must consider the severity of the wind and rain as well as safe commute, while the public is concerned with whether they have to commute during the storm. Financial markets face whether they have to suspend trading.

Yet, despite years of repeated debates over whether to grant a day off, Taiwan has given relatively little thought to a more fundamental question: Should financial markets follow local governments’ decisions to suspend work and classes on typhoon days?

Democratic Progressive Party (DPP) Legislator and Taipei mayoral candidate Puma Shen (沈伯洋) has proposed that, as a major financial hub, Taipei should consider whether stock market trading should be decoupled from typhoon days off and whether financial institutions could adopt different contingency measures. The key question is whether ensuring the safety of commuters means that financial markets should also suspend trading.

The purpose of suspending work and classes is to reduce the risks people face when commuting during typhoons, whereas financial markets must consider whether stock trading and subsequent settlement can proceed normally. The considerations behind local governments’ decisions to suspend work and classes are not identical to those behind the decision to close the stock market, so the two do not necessarily need to follow the same approach.

With digital trading and remote work becoming increasingly widespread, the central government should reassess the system and explore whether financial markets could maintain some level of operation when local governments announce work and class suspensions.

Of course, keeping the stock market open does not mean employees should be expected to brave the storm to get to work. If the central government intends to implement such a policy, it should explore arrangements for remote work, staffing requirements for essential personnel and guidelines for handling situations in which employees cannot report to work due to transportation disruptions or safety concerns during their commute.

Otherwise, if the policy is only concerned with the operation of financial markets while shifting risks onto employees, it would defeat the very purpose of institutional reform.

The mayor of Taipei might not have the authority to unilaterally decide whether financial markets should close, but the city can put forward concrete proposals and coordinate with the central government and financial regulators to establish clear guidelines for work suspension standards, financial contingency measures and worker safety.

Shen’s proposal has given society an opportunity to move beyond the binary debate or whether to declare a typhoon day off. As remote work becomes increasingly common and financial trading methods continue to evolve, Taiwan should also rethink how to maintain financial market operations and protect workers’ rights while ensuring people’s safety.