Published On: Tue, Sep 2nd, 2014

TWSE And LSE Discuss Potential Cross-Border Trading Cooperation

Lee Sush-Der, Chairman Taiwan Stock Exchange -

Lee Sush-Der, Chairman Taiwan Stock Exchange –

Mr. Lee Sush-der, Chairman of the Taiwan Stock Exchange (TWSE), led a delegation to London on 1 September 2014. During the visit, TWSE met with the London Stock Exchange (LSE) to discuss areas for potential cooperation, including the promotion of the Taiwan and London capital markets and cross-border trading mechanisms. The trip is part of TWSE’s investor outreach program which aims to attract more international investors to the Taiwan market.

In London, TWSE hosted a seminar to introduce the latest development of the Taiwan capital market to local institutional investors and promote market reforms that have been recently introduced to the Taiwan market, which include changes to Taiwan’s trading mechanism, the launch of a blueprint for corporate governance and an upgrade of TWSE’s trading system. The delegation also introduced the future development plan of the Taiwan capital market at the seminar, which attracted more than 50 institutional investors based in the United Kingdom.

TWSE has been proactively developing closer ties and cross-promotion initiatives with foreign stock exchanges. By enhancing the infrastructure of its trading platform and introducing new financial products, TWSE has succeeded in attracting more international investors to the Taiwan market. In addition, recent market-opening measures and improving economic growth has contributed to the strong performance of Taiwan’s stock market. As of 31 August 2014, the TAIEX index has risen 9.6% YTD, or up 17.6% YoY compared with the same period from the previous year. The trading volume also rose 8.8% YoY compared to August 2013.

During this trip, Mr. Lee, has also met with Mr. Alexander Justham, CEO of London Stock Exchange plc, to discuss potential cooperation in areas such as bilateral market promotion, cross-border trading and yuan-denominated product development. Both Taiwan and London are currently developing offshore yuan centres. As of the end of July 2014, the total value of yuan deposits managed by Taiwan’s domestic banking units (DBU) and offshore banking units (OBU) amounted to 293 billion yuan. Leveraging on London’s extensive experience in developing multi-currency products, the two exchanges hope to foster mutual cooperation in developing yuan-denominated products and provide more diversified investment options for investors.

Mr. Lee, said: “Stock exchanges around the world are committed to developing closer ties and trading links with foreign stock exchanges. TWSE has spared no effort in exploring potential cooperation initiatives with international stock exchanges. We also held successful meetings with U.K. financial institutions during the visit. Looking forward, we will continue to increase the vibrancy of the Taiwan capital market, bring it further in line with international standards and offer participants more investment opportunities.”

After TWSE’s visit to the Singapore Exchange in April to discuss the Taiwan-Singapore trading link, it has also started discussing potential cooperation with the Japan Exchange Group. TWSE aims to work with more international stock exchanges in order to boost the liquidity of Taiwan’s capital market and bring more investment opportunities to investors.

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