Taiwan Stock Exchange Creates TIP Subsidiary for Index Products

The Taiwanese exchange segments key unit under new subsidiary.

The Taiwan Stock Exchange (TWSE) today announced a new wholly-owned subsidiary named Taiwan Index Plus Corporation (TIP) that it has created in order to cater to the needs of index related product creation and structuring, and which will handle the the maintenance and promotion of existing related index products.

As part of the new subsidiary’s role, TIP will overtake the responsibilities for index development, maintenance, licensing and marketing within both Taiwan and internationally, as the exchange looks to grow out that business through the new entity.

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“Having one company dedicated to index services will increase the competitiveness of the Taiwan market in terms of innovation and efficiency.”

 

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TIP will oversee the licensing that is common when companies create exchange-traded funds (ETFs), index funds, index futures, index options, index warrants, structured products, and other index-based instruments made either by the exchange or 3rd parties. The new office for TIP located in the Xinyi District of Taipei had just started operating on March 14th, and the company had a celebration event in January ahead of the planned launch.

Aimed at $11 Trillion Index Market

The currently available products at TWSE that TIP will also be responsible for maintaining and promoting include, the indices on TWSE, including its benchmark TAIEX series, and other indices co-compiled with FTSE, Research Affiliates, and S&P Dow Jones Indices, as well as its other customized indices according to the company’s press release. The exchange has created a website dedicated to the new subsidiary under the url taiwanindex.com.tw.

TWSE Chairman Sush-der Lee said regarding the news: “The establishment of a professional index company in Taiwan will help us better meet the growing global demand for index investments – a US$11 trillion market. In addition to providing a wide range of index services, information services, and innovative products for Taiwan’s capital markets, TIP will also promote international connections and cooperation between Taiwan and global markets, while further stimulating the development of Taiwan’s capital market.”

The new TIP CEO Shin-chung Chen said in the press release: “Many other major markets around the world have dedicated index companies that operate either independently or as a joint venture. Having one company dedicated to index services will increase the competitiveness of the Taiwan market in terms of innovation and efficiency. It will also accelerate the development of diversified indices in Taiwan and promote their widespread adoption in domestic and overseas markets.”

The news comes just days after another major exchange in Taiwan obtained SEC relief for a number of newly created contracts.

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