TAIFEX Offers Real-Time Market Data Ahead of Continuous Trading

The new trading mechanism will replace the call auction platform currently adopted by the local equity market.

Taiwan exchange operator TAIFEX plans to launch a new data feed for the stock market, which aims to be more manageable for investors looking to consume real-time data on prices and volumes.

The move comes as the Taiwan Futures Exchange is set to introduce a “continuous trading” mechanism in March 2020 in a bid to enhance trading efficiency and meet international standards. Starting from March 23, market participants and information vendors can choose to connect to the new real-time data feed or the existing feed, depending on their needs.

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TAIFEX said the new trading mechanism would replace the call auction platform currently adopted by the local equity market. Specifically, the exchange platform will be able to match up buy and sell orders soon as they are reported, compared to the existing mechanism that collects orders over five seconds before matching occurs.

The exchange explains that the real-time data feed will speed up the pace of continuous trading as traders place orders and are matched in real-time.

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“With real-time data reflecting the continuous matching of trades on TAIFEX, market participants will be able to gain the latest intelligence to market movements and discover trading opportunities. The robust new data feed will also greatly strengthen investors’ capabilities of deploying various trading strategies between the cash and futures markets,” it added.

FX scene in Taiwan

Established in 1997 as the sole futures exchange in Taiwan, TAIFEX offers trading in futures and options across several asset classes, including equities, indices, FX, interest rates, and commodities.

In terms of its FX scene, Taiwan’s central bank allows the country’s securities firms to handle spot and derivatives products denominated in the Taiwan new dollar against foreign currencies.

Attempting to strike a balanced stance, the central bank set out more relaxed requirements for the sale of foreign exchange derivatives. The regulator allowed the island’s local brokers to handle forex business for the first time back in 2013.

Taiwan is actually the most fragmented brokerage market across all the Asian countries, which managed earlier to consolidate the markets. The central bank’s decision was aimed at benefiting the nation’s crowded securities sector by offering new revenue streams to sustain profitability amid lower trading volumes and head-to-head competition in Taiwan’s domestic stock market.

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