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What Is the Taiwan Stock Exchange?

The Taiwan Stock Exchange (TAI) .TW, also known as the TWSE, has played a pivotal role in Taiwan's financial landscape since its establishment in 1961. This exchange, headquartered in Taipei, serves as the primary hub for securities trading in the region. Over the years, it has evolved to become a critical player in both domestic and international financial markets.

A Multifaceted Marketplace

The TWSE boasts a diverse range of listed securities, including stocks, government bonds, convertible bonds, exchange-traded funds (ETFs), call warrants, put warrants, Taiwan Depositary Receipts (TDRs), and REIT beneficiary securities. This broad array of investment options makes it an attractive destination for investors with varying risk appetites and preferences.

Beyond facilitating trading, the TWSE provides a comprehensive suite of services, including corporate governance oversight, clearing and settlement operations, information dissemination, market surveillance, and regulation enforcement. This holistic approach to the financial ecosystem underscores the TWSE's commitment to maintaining the integrity and efficiency of Taiwan's capital markets.

Driving Economic Growth

One of the key missions of the TWSE is to drive Taiwan's economic growth. It seeks to accomplish this by continuously developing innovative financial products and enhancing the competitiveness of Taiwan's capital markets. This dedication to progress has positioned Taiwan as a formidable player in the global financial arena.

Trading Hours and Currency

The TWSE operates from Monday through Friday, from 9 a.m. to 1:30 p.m. It conducts its trades in New Taiwan Dollars (TWD), the official currency of Taiwan. This schedule ensures a consistent and accessible trading environment for investors, both local and international.

Listing Requirements

Companies looking to list on the TWSE, whether they are domestic or foreign, must meet specific financial and operational criteria. The listing process involves a thorough evaluation by internal committees, the Securities Listing Review Committee, and ultimately, the TWSE Board of Directors. Once approved, the company and the TWSE enter into an official listing contract, which is recorded with the Financial Supervisory Commission (FSC). Subsequently, listed companies must adhere to various requirements, including making listing fee payments and submitting financial reports to ensure transparency and accountability.

Notable Milestones

Throughout its history, the TWSE has achieved several significant milestones:

  1. Establishment: On October 23, 1961, the TWSE was established as Taiwan's premier securities trading center.

  2. Official Opening: It officially commenced operations on February 9, 1962, marking the beginning of its journey.

  3. Electronic Systems: On September 1, 1976, the TWSE transitioned its clearing and settlement systems to electronic platforms, modernizing its operations.

  4. Global Engagement: In 1982, the TWSE became a founding member of the Asian and Oceanian Stock Exchanges Federation (AOSEF), expanding its global reach.

  5. International Affiliation: In 1993, the TWSE joined the International Organization of Securities Commissions (IOSCO) as an affiliate member, strengthening its commitment to international standards.

  6. Quality Management: The TWSE earned the ISO 9001 certification for quality management systems in 1998, showcasing its dedication to excellence.

  7. Information Security: In 2004, it became the first exchange globally to earn the ISO 27001/BS7799 certification for implementing robust information security management systems.

  8. Global Association: In 2008, the TWSE joined the Global Association of Central Counterparties (CCP12), further solidifying its place in the global financial landscape.

  9. IT Service Management: In 2011, it became the fourth exchange in the world to earn the ISO 20000 IT Service Management certification, highlighting its commitment to technological excellence.

The Taiwan Stock Exchange (TAI) .TW, or TWSE, has not only been a vital platform for securities trading but also a symbol of Taiwan's commitment to excellence and innovation in the financial industry. As it continues to evolve and adapt to changing market dynamics, it remains a key driver of economic growth and prosperity in Taiwan and beyond. Investors and businesses alike can look to the TWSE as a gateway to growth and opportunity in the Asian financial landscape.

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Disclaimers and Limitations

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