1 / 9

SLB Service in Taiwan Securities Market

SLB Service in Taiwan Securities Market. Taiwan Depository & Clearing Co. ACG New Service Initiative Task Force. History & Development. Stocks SLB Sep. 1996 - for “settlement” Taiwan Stock Exchange initiated the SLB system for completing settlement

buck
Télécharger la présentation

SLB Service in Taiwan Securities Market

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. SLB Service in Taiwan Securities Market Taiwan Depository & Clearing Co. ACG New Service Initiative Task Force

  2. History & Development Stocks SLB • Sep. 1996 - for “settlement” • Taiwan Stock Exchange initiated the SLB system for completing settlement • TDCC has processed book-entry for SLB transactions • Jun. 2003 - for “strategic trading” • SLB system was opened for institutional investors’ arbitrage, hedging or exercise related transaction • June 2005 - for “trading and exercising” • “Strategic trading purposes” requirement was abolished • The total market volume limit was adopted • more eligible securities were added to SLB system

  3. History & Development (Continue) Bonds SLB (Jan. 2004) • GreTai Securities Market (GTSM) initiated bonds SLB system • Only Federal bonds were eligible • Matching, risk management, guarantee and settlements provide by GTSM • TDCC is not engaged in any services for bonds SLB

  4. Statistic of Stocks Lending & Borrowing

  5. Factors stagnated the growth of SLB’s turnover volume • Less ECB issued • Less volatility of market price • Insurance companies suspend securities lending • No short selling under the closing price of previous trading day • Tax Concern

  6. NEXT STEPS • Solve the settlement’s problem on the sales of lent securities • Abolish price limit of indicated short sales • Allow foreign private funds to participate in SLB market • Allow to loan the borrowed securities • Assist to solve problems with the tax authority • Simplify the pledge procedure

  7. Thanks

  8. Types of SLB Transactions • Settlement Purpose SLBFor a securities firm or a securities financing enterprise to complete settlements • Trading and Exercise Purpose SLB 1. Fixed-rate transactions 2. Competitive-auction transactions 3. Negotiated transactions

  9. Participation -Trading & Exercise Purpose SLB • Permitted Lenders1. Insurance companies2. Financial institutions3. Securities investment trust companies4. Dedicated futures commission merchants, and5. Others approved by the competent authority (Such as foreign institutional investors (FINIs) and 4 governmental funds) • Permitted Borrowers1. Securities dealers2. Securities investment trust companies3. Futures dealers, and 4. Others approved by the competent authority (FINIs)

More Related