Taiwan Stock Exchange rolls out new trading system

28 August 2014   Category: News, Asia, Global, Taiwan   By Hui Ching-hoo

Taiwan Stock Exchange (TWSE) has launched its second generation FAST (Fully Automated Securities Trading) system, replacing all existing trading platforms.

The bourse said in a statement that the new proprietary system boosts TWSE’s trading capacity by three times, reduces latency by 17 times, and doubles system efficiency. It also enhances the capacity of the Taiwan capital market in preparation for the adoption of continuous trading in 2015.

All listed products, including warrants, ETFs, REITs, Taiwan depository receipts, and securities have been migrated to the new system. 

Michael Lin, president of TWSE, said: “The network infrastructure, data dissemination, trade engine, risk management and monitoring functions of the new system conform to the latest international standards and will better meet the demands of changing regulatory requirements and the rapid expansion of day-trading volumes in the Taiwan market.”

The Financial Supervisory Commission (FSC) recently introduced regulatory changes that allow investors to conduct day trading and allow issuers to introduce innovative products, such as commodity ETFs, inverse/leveraged ETFs, and potentially, multi-currency products to the Taiwan market.

During the first half of 2014, foreign institutional investor participation in the Taiwan market exceeded 35%, the highest level since the global financial crisis.

Mr. Lin added: “Higher trading speeds and compatibility with international order management protocols will make it much easier for foreign investors to access the Taiwan market. The timely rollout of the second generation trading is very much in line with our broader future business development needs. It will also help prepare TWSE to take advantage of recent trends, such as cross-border electronic trading, and offer new products and services for the benefit of local and international participants.”