The Taipei Exchange (TPEx) is a securities exchange in Taiwan that operates an over‑the‑counter (OTC) market for listed securities, including equities, bonds, and derivative instruments. It is headquartered in Taipei and functions under the regulatory oversight of the Financial Supervisory Commission (FSC) of the Republic of China (Taiwan).
History
- The organization originated as the GreTai Securities Market (GTSM), which was established in 1994 to provide a platform for trading securities that did not meet the listing requirements of the Taiwan Stock Exchange (TWSE).
- On 24 May 2015, the GTSM was rebranded as the Taipei Exchange, adopting its current name and expanding its operational scope.
Structure and Operations
- Market Segments: TPEx administers several market segments, notably the Emerging Stock Board (also known as the Emerging Market) for smaller and newer companies, and the Taipei Exchange Bond Market for corporate and government bonds.
- Listing Requirements: Companies seeking a TPEx listing must satisfy criteria concerning corporate governance, financial reporting, and shareholder equity that are less stringent than those of the TWSE, facilitating access for smaller and growth‑stage enterprises.
- Trading System: Trading is conducted electronically via the TPEx trading platform, which supports real‑time order matching, price dissemination, and post‑trade settlement.
- Trading Hours: Normal trading sessions run from 09:00 to 13:45 local time, with a pre‑opening session for order entry and a post‑closing session for order cancellation.
Regulatory Framework
- The Taipei Exchange operates in accordance with the Securities and Exchange Act and related regulations promulgated by the FSC. It is subject to periodic inspections and reporting requirements to ensure market integrity, investor protection, and compliance with anti‑money‑laundering statutes.
Role in Taiwan’s Financial Market
- TPEx provides an alternative venue for companies that are either too small or too early‑stage for the TWSE, thereby broadening capital‑raising opportunities and enhancing market depth.
- It also offers a secondary market for securities that have been delisted from the TWSE, allowing continued liquidity for investors.
Key Statistics (as of 2023)
- Number of listed securities: approximately 1,200 equities and 600 bonds.
- Daily average trading volume: roughly NT$45 billion (≈ US$1.4 billion).
International Cooperation
- The Taipei Exchange collaborates with foreign exchanges and market infrastructures to facilitate cross‑border listings, information sharing, and technology integration, though most of its activity remains domestic.
Future Developments
- The exchange has announced initiatives to modernize its trading systems, expand its product suite (including more derivatives and ESG‑focused securities), and improve market transparency through enhanced disclosure standards.
References
- Financial Supervisory Commission, Republic of China (Taiwan). “Regulations Governing Securities Exchanges.”
- Taipei Exchange Official Website. “About TPEx.” Accessed 2024.
- Ministry of Economic Affairs, Taiwan. “Statistics of Listed Companies.” 2023 Annual Report.