How the Taiwan Stock Exchange came into being: history
The Taiwan Stock Exchange (TWSE) plays a crucial role in the country’s economic development. It acts as one of the market’s driving forces and helps regulate trading processes.
Founded in 1961, the first transactions were concluded the following year. The preconditions for the platform’s formation were established in 1953 with the introduction of the national policy, “Land to the Landowner.” During this period, the four largest state-owned companies began trading shares and land bonds on the secondary market. However, the activities of these participants were not regulated by legislation, which led to illegal schemes. Therefore, it became necessary to introduce mechanisms for managing and controlling brokers.
Mission of the exchange
This resulted in the establishment of the TWSE, which assumed responsibility for supervising market processes. Since its inception, the exchange has pursued the unified mission of increasing market liquidity and activity. This has stimulated economic growth. The trading platform strengthens the relationship between private capital and business investment. The Taiwan Stock Exchange adheres to a long-term strategy that includes:
– ensuring transparent and structured processes for companies to raise capital;
– creating a safe investment environment for the population;
– increasing the transparency of corporate information;
– improving trading mechanisms;
– enhancing portfolio diversification when working with financial products.
The exchange strives to increase the efficiency of its activities by expanding the market’s functions. To this end, the platform has implemented a new trading system that complies with international standards. Additionally, the TWSE is working to create an attractive investment environment.
Important stages of development
Since its opening in 1961, the exchange has continued to improve its approach. An important stage in its development occurred in 1972 with the launch of the open auction trading system. Four years later, the TWSE transitioned to electronic clearing and settlement processes.
The Taiwan Stock Exchange recognized the importance of fostering a competitive environment in the region to drive development. The TWSE became one of the founders of the Association of East Asian and Oceanian Stock Exchanges (AOSEF).
In 1993, the exchange became an affiliate member of the International Organization of Securities Commissions (IOSCO), an organization that regulates securities activities. A few years later, the platform introduced a Clearing Fund. Additionally, a joint liability system for organizing trading and settlement operations was introduced.
In 1998, the exchange’s activities were recognized internationally. The Taiwanese exchange became the second in the world to receive the ISO 9001 quality management certificate. Since then, the TWSE has maintained this standard and striven to improve its approaches. These efforts help make the local market as attractive as possible for foreign capital.
