萬國法律事務所

The plan for an integrated “4-in-1” securities market has been put to a halt due to the unsatisfactory situation from other foreign nations’ integrated securities markets. As such, the Financial Supervisory Commission (FSC) of the Executive Yuan is to re-evaluate the implementation of an integrated securities market in Taiwan.

Last year, the Finance Committee of the Legislative Yuan had deliberated and approved the amendment of the Securities and Exchange Act to allow the integration of related entities, including the Taiwan Stock Exchange, Taiwan Futures Exchange, GreTai Securities Market (OTC) and Taiwan Depository and Clearing Corporation, to an integrated securities market.

According to the initial “4-in-1” plan, a holding company will be established to integrate all of the four above entities and an independent supervisory centre will also be set up. It is estimated that the integration will be completed within 3 years. However, this means that the “4-in-1” plan will increase rather than decrease costs as initially intended by the FSC.

In addition, the Congress had had difficulties in reaching an agreement on the details of the amendments of related laws, including the regulation on insider trading, which has also caused the “4-in-1” plan to stall.

Moreover, seeing Singapore’s integrated securities market, which, after the integration, has decreased its ranking in trading volume and market capitalization, the FSC is concerned with the effectiveness of an integrated securities market and intends to re-evaluate the direction of the “4-in-1” plan in Taiwan.