Profiles of IFIE Members' Financial and Investor Education Programs

Taiwan Stock Exchange (TSEC)

Taiwan Stock Exchange (TSEC)


About Taiwan Stock Exchange (TSEC):

TSEC is committed to positioning itself as the most cost-efficient and liquid market in the Asia region. At the end of January 2006, 687 companies were listed on the TSEC with total market capitalization of US$ 578 billion, including well known companies such as TSMC, Acer and ASUS. On January 15, 2007, TSEC and FTSE jointly debuted two new indexes, i.e., TSEC Taiwan Eight Industries Index and TSEC Taiwan Dividend Index. Based on the criteria of the ICB, the Taiwan Eight Industries selects underlying stocks from such industries as basic materials, manufacturing, and living & consumer goods. On the other hand, the Taiwan Dividend Index selects 30 underlying stock from the TSEC Taiwan 50 Index and Taiwan Mid-Cap Index in terms of their profitability. The Taiwan Stock Exchange Capitalization Weighted Stock Index ("TAIEX") is the most widely quoted of all TSEC indices. In addition, since its inception in 1961, TSEC has kept pace with the market development and the most up-to-date technologies. TSEC works with our competent authority, Financial Supervisory Commission (FSC), to deregulate and liberalize Taiwan's stock market, and gears itself up more in line with major international market.

TSEC has recently focused on developing new products to enhance the diversification of securities and to provide investors with hedging tools. TSEC began to accept listing applications of put warrants in January 2003, and REIT Beneficiary Securities in March 2005. TSEC also launched the first Exchange Traded Fund (ETF) on June 30, 2003, and ETF warrants in July 2004. Securities currently listed on TSEC include stocks, entitlement certificates of convertible bonds, convertible bonds, government bonds, beneficiary certificates, call warrants, put warrants, ETF, Taiwan Depository Receipts (TDRs) and beneficiary securities. To cope with a rapidly changing global capital market, major stock exchanges have experienced a universal trend towards consolidation of markets and business resources. Out of a similar concern, TSEC is proceeding along a similar path with peer market operators in Taiwan. With a view to becoming an important player in the international arena, TSEC will pursue economies of scale and aim to improve operational efficiency in order to enhance core competitiveness and continued development of the Taiwan securities market.