Introduction
Taiwan is a small island nation located off the east coast of mainland China. The island has been home to a thriving stock exchange and securities market since the 1940s, making it one of the oldest in the Far East. Operating under the name of the Taiwan Stock Exchange, the market provides investors with a wide range of securities to choose from, including equities, debt instruments, derivatives, and commodities. Today, the Taiwan Stock Exchange is one of the most important securities markets in the region, due to its long history of innovation and development in the region.
Overview
The Taiwan Stock Exchange (TWSE) was established in 1949 and has become an important part of the Asian financial system. It ranks among the top ten exchanges in the world, with a total market capitalization of $707 billion as of December 2018. The exchange trading volume, turnover, and market capitalization have grown steadily over the years, fueled by strong economic growth in the region.
The TWSE is subject to the same legal principles and standards of corporate governance as the Western counterparts. Taiwan has a dual-board system in place to promote transparency and oversight of the country’s financial markets. The primary regulator of the exchange is the Taiwan Stock Exchange Corporation, while the Ministry of Economic Affairs, the Financial Supervisory Commission, and the Central Depositary Corporation provide additional oversight and supervision. The exchange is also subject to SEC-style regulations and periodic reviews by the Financial Supervisory Commission.
Types of Trading
The TWSE provides investors with a wide range of securities to choose from, including equities, debt instruments, derivatives, and commodities. Stocks can be traded on the primary market or through liquidity providers, such as brokers and investment banks. Additionally, the exchange also offers margin financing and real-time news alerts.
The TWSE also provides trading services through its platform for automated trading, FIXR, which allows investors to access multiple exchanges and brokers simultaneously. FIXR provides traders with access to market data and news, as well as real-time trade execution and post-trade analytics.
Conclusion
The Taiwan Stock Exchange provides investors with a wide range of securities and trading products, as well as an efficient and cost-effective platform for automated trading. It is subject to the same legal principles and standards of corporate governance as the Western counterparts and provides investors with access to the latest market data, news, and tools. The Taiwan Stock Exchange ranks among the top ten exchanges in the world, making it one of the most important markets in the region.
