TAIWAN TO OPEN ITS OVER-THE-COUNTER SECURITIES MARKET TO DAY TRADING
Taiwan’s Financial Supervisory Commission indicated on 20 September 2005 that the over-the-counter market would begin soon to permit investors to make same-day substitutions of their holdings. This new activity will officially commence only after the over-the-counter market establishes the necessary regulations and the relevant authorities approve the same.
The Financial Supervisory Commission has explained that the over-the-counter market has grown significantly subsequent the introduction in 1999 of the credit trading system. Companies listed on the over-the-counter Securities Market numbered 466 by the close of 2004 and turnover increased substantially. In fact, the rate of growth was 237.29% last year.
This indicates that the over-the-counter Market has matured and grown to such a degree of depth and liquidity that it is now capable of hosting day trading. This latest liberalization is expected to afford one more method of hedging risk available to over-the-counter traders.
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