Taiwan Stock Exchange engages in discussions with US exchanges on ESG development and enhancing capital market cooperation

HONG KONG SAR – Media OutReach – 14 September 2023 – A delegation of the Securities and Futures Bureau of Taiwan’s Financial Supervisory Commission and the Taiwan Stock Exchange (the “TWSE”) began its nine-day visit to the US on September 11. The delegation visited two US exchanges, the New York Stock Exchange (the “NYSE”) and Nasdaq, and will visit The Depository Trust & Clearing Company (the “DTCC”) to engage in discussions with their US counterparts on ESG initiatives, carbon exchanges, and listing regulations, as well as the U.S. move to T+1 with the aim to deepen cooperation between the two capital markets.

The visit marks the first high-level meeting between the TWSE and both the Nasdaq and the NYSE in five years. The delegation met with senior representatives from Nasdaq and the NYSE, and watched Nasdaq’s opening bell ringing ceremony at the invitation of Nasdaq.

As competition among international exchanges intensifies, the TWSE has prioritized the development of new strategies to meet evolving challenges and stay competitive globally. Marking the TWSE’s first visit to the US since the outbreak of the Covid-19 pandemic, the delegation, led by Chen-Shan Chang, Director-General of the Securities and Futures Bureau of the Financial Supervisory Commission, and Sherman Lin, Chairman and CEO of the TWSE, visited both the NYSE and Nasdaq, with James K.J. Lee, Director-General, Taipei Economic and Cultural Office in New York, joining the Nasdaq visit.

Lin said, “We have embarked on a fruitful US visit to share our views and ideas face-to-face with the two major exchanges in the US. We have also been invited to watch the Nasdaq opening bell ceremony, a testament that the visit is highly valued by both Taiwan and the US. We look forward to strengthening the solid foundation for networking and partnership between the TWSE and the leading exchanges in the US.”

Global IPO activity has seen a slowdown this year. To continue to attract quality companies to apply for listing in Taiwan, the TWSE also exchanged views with the two major US exchanges on listing conditions that strike a balance between revitalizing the market and practicing supervision, as well as ways to explore listing sources overseas.

The TWSE and Nasdaq discussed the important role carbon exchanges can play channeling capital to sustainability projects. The TWSE shared insights on the Taiwan Carbon Solution Exchange inaugurated in August, conducting in-depth discussions on issues like emission reduction, green energy development, climate change, and carbon credit related investment products. TWSE also shared its vision on establishing a carbon trading platform that is efficient and meets the user demand, so as to support the development of the carbon market and green investment.

TWSE to gain insights on US move to T+1 from DTCC

As the U.S. financial services industry continues to make significant progress towards implementing a shortened T+1 settlement cycle for transactions in U.S. cash equities, corporate debt, and unit investment trusts on May 28, 2024, the TWSE is scheduled to meet with Frank La Salla, President, CEO and Director of DTCC, a leading provider of US market infrastructure, to seek insights on the U.S. shift to T+1.

Frank La Salla said, “DTCC remains committed to safeguarding financial markets around the world while continuing to deliver new and innovative solutions that deliver maximum value to our clients. We look forward to meeting with the TWSE to share more information on key initiatives, such as accelerating settlement to T+1 in the U.S., as well as opportunities to further mitigate risk and increase market efficiencies.”

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About TWSE

The Taiwan Stock Exchange (the “TWSE”) started operations on February 9, 1962. The TWSE is responsible for operating and advancing Taiwan securities market. The TWSE’s primary business operations include listing, trading, settlement and surveillance. These comprise listing promotion and review, post-listing supervision and corporate governance, maintaining market trading and order, securities firms’ services, investor protection, clearing and settlement operations, safeguarding against market defaults and the monitoring of illegal transactions. The Exchange provides comprehensive services to the stock market.