Taiwan Stock Exchange and BATS Exchange Sign MOU
Taiwan Stock Exchange Corporation (TWSE) and BATS Exchange, Inc. signed a Memorandum of Understanding (MOU) May 26 on information sharing. BATS is the third-largest exchange in the United States, founded in 2005. It was launched as an electronic communication network (ECN) in 2006, and was upgraded to an exchange in August 2008. It currently accounts for 10% of total trading volume in the United States, behind NYSE Euronext and Nasdaq OMX.
Under the MOU, US and Taiwan investors will gain better access to information on Taiwanese dual-listed companies, including listing prices, volume traded, settlement and blocktrades for dual-listed companies. This improved access will strengthen the liquidity of Taiwan ADRs, enhance price discovery and the supervision of trades. Cooperation with foreign exchanges will help to internationalize the Taiwan capital markets, hence, protecting investors and facilitating a fair, systematic and efficient trading market.
Dr. Chi Schive, Chairman of TWSE commented:
“We are delighted to forge new links with this overseas exchange to improve the liquidity of Taiwan stocks. We hope this MOU promotes further cooperation in other areas.There are seven listed companies issue ADRs currently. These companies include United Microelectronics (UMC), Advanced Semiconductor Engineering (ASE), Taiwan Semiconductor Manufacturing (TSMC), etc.”
He continued, ”Our efforts in internationalizing the Taiwan capital market go beyond forging new links with overseas exchanges. Following the successful listing of Integrated Memory Logic (IML), the first overseas company to list in Taiwan, we expect over 50 overseas and Taiwan companies to list or issue TDRs in our market.”
In order to reinforce its cooperation with international counterparts, Taiwan Stock Exchange has reached out to and signed MOUs with 27 overseas exchanges. These exchanges include NYSE Euronext, Nasdaq OMX, Chicago Mercantile Exchange, Chicago Board Options Exchange, and other major exchanges in the world.