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Taiwan bourse signs cooperation agreements with ISE and PHLX

06 May 2008  |  1720 views  |  0 Source: Taiwan Stock Exchange Corporation

Taiwan Stock Exchange Corporation (TSEC) and the International Securities Exchange (ISE) signed a Memorandum of Understanding (MOU) today on information sharing and cooperation.

The MOU, signed by Dr. Rong-I Wu, Chairman of the TSEC, and Gary Katz, President and CEO of ISE, marked the beginning of closer collaboration between Taiwan and US bourses. Cooperation on information sharing will facilitate the trading of Exchange Traded Funds (ETFs) on the ISE Stock Exchange and listing options on those ETFs as well as certain indexes. With this MOU in place, US investors will have greater access to financial instruments that track the performance of Taiwanese companies.

Dr. Wu, Chairman of TSEC, commented: "US-based investors are beginning to see the value of investing into Taiwan. For the benefit of the index trading community, Taiwan Stock Exchange has made significant reforms and marked improvement in its trading environment to align with international practices. Building an alliance with the International Securities Exchange, the world's largest equity options exchange, will help stimulate the development of ETFs for both exchanges."

The Taiwan bourse is one of the best performing stock markets in Asia despite the US sub-prime crisis. Its benchmark TAIEX posted positive gains during the first quarter of 2008. Taiwan is also the leading gateway to capture growth opportunities in China and other emerging economies in South East Asia. Taiwanese businesses are amongst the biggest overseas investors in China, Vietnam, Thailand and Malaysia.

Currently, there are 3 ETFs/indexes, which contain leading Taiwanese industrial, technology and financial companies as constituents, listed for options trading on ISE. Several additional Taiwan-related ETFs or indexes may be added later this year for trading on ISE's options exchange and on the ISE Stock Exchange. Both exchanges believe that the agreement will contribute to their further growth and stimulate active trading of securities that have Taiwanese-based component companies.

Gary Katz, President and CEO of ISE, commented: "We are very pleased to have established this agreement with the Taiwan Stock Exchange and view it as an important first step in developing options on leading indexes and ETFs related to Taiwan. The MOU will also enable us to expand the international ETFs that will be traded on the ISE Stock Exchange and creates a strong foundation to foster closer ties and cooperation between our two exchanges."

Separately, Taiwan Stock Exchange Corporation (TSEC) and the Philadelphia Stock Exchange Inc (PHLX) signed a Memorandum of Understanding (MOU) today on information sharing and cooperation.

The MOU, was signed by Dr. Rong-I Wu, Chairman of the TSEC, and Mr. Meyer S. Frucher, Chairman and CEO of the PHLX. By cooperating on information sharing with the first organized exchange in the U.S., the TSEC is taking a "First step" on promoting the technology sector in Taiwan to U.S. index traders.

The MOU also reflects the significant interest and demand from U.S. traders on Taiwan technology stocks.

Dr. Wu, Chairman of TSEC commented: "Taiwan technology companies are entrenched as part of the global IT value chain. Many popular consumer electronics products such as iphone, ipod, X-box, etc are produced by Taiwanese companies. U.S. index traders are beginning to see the value of technology play in Taiwan. For the benefit of the index trading community, Taiwan Stock Exchange has made significant reforms and marked improvements in its trading environment. This MOU with the Philadelphia Stock Exchange, the first organized exchange in the U.S., may be a step in stimulating the development of new financial instruments for both exchanges."

The Taiwan bourse is one of the best performing stock markets in Asia despite the U.S. sub-prime crisis. Its benchmark TAIEX posted positive gains during the first quarter of 2008. Taiwan is also the leading gateway to capture growth opportunities in China and other emerging economies in South East Asia. Taiwanese businesses are amongst the biggest overseas investors in China, Vietnam, Thailand and Malaysia economies.

Mr. Meyer S. Frucher, Chairman and CEO of the PHLX commented: "We are very pleased to have established collaboration with the Taiwan Stock Exchange. The MOU creates a strong foundation to foster closer ties and cooperation between our two exchanges."

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