GreTai Securities Market

From MarketsWiki
Jump to: navigation, search
GreTai Securities Market
GTSM.jpg
Founded 1994
Headquarters Taipei, Taiwan
Key People Chairman Gordon Shuh Chen

The GreTai Securities Market (GTSM) is an over-the-counter (OTC) market for Taiwanese securities whose market capitalisation and equities benchmark both more than doubled in 2009. The GTSM forged links with two neighboring south-east Asian securities exchanges in 2009-10 to distribute Taiwanese investments around the region and connect Taiwanese investors to global markets.

Backgound

The GTSM was formed in 1994, 12 years after the Taiwanese government re-introduced OTC bond trading and six years after the Taipei Securities Dealers Association (TSDA) began tading stocks OTC. In 2002 the GTSM began introducing listed derivatives contracts for trading and also joined the International Organization of Securities Commission (IOSCO) as a full member and the World Federation of Exchanges (WFE) as a correspondent.[1]

In 2004 the GTSM entered a joint venture with global financial information company Reuters to develop a new 10-year Government Bond Benchmark Index, calculated on a volume-weighted average method from total trading volumes and average yields on the GTSM's electronic trading systems.[2] Five years later GTSM launched another partnership, this time with interdealer broker ICAP, to launch Taiwan-based trading of US treasury bonds via ICAP's liquidity pools. The agreement integrates GTSM's bond-trading platform with ICAP's BroketTec matching engine and followed the lifting in 2009 of restrictions on Taiwan-based tradingh of foreign-government bonds.[3]

THe GTSM was purchased by the government-ownedSecurities and Futures Financial Holding Co. on July 1, 2006, when it officially became known as OTC (although unoffically it is still called Gre Tai) as a corporation.[4] The Taiwan Stock Exchange, Taiwan Futures Exchange and Taiwan Depository and Clearing Corp. were subsequently incorporated under the same ownership.[5]

Recent performance

Market capitalization of OTC shares on the GTSM rose by almost 150% in 2009 to reach US$59.26 million while its benchmark index rose more than 130% to hit 150.05 on the last day of trading in 2009.[6] Daily transaction volume for OTC shares on the GTSM climbed more than 58% compared to 2008, while warrant trading volume also set a single-year record.

Key people

GTSM Chairman Gordon Shu Chen, a former deputy finance minister of Taiwan, was named the new chairman of GTSM in August 2009.

Latest news

The GTSM signed a March 2010 memorandum of understanding signed with Bursa Malaysia to share training, technology and ultimately listings and trading platforms.[7] GTSM signed an almost identical agreement with Bursa Malaysia's neighbor, the Singapore Exchange (SGX), in November 2009.[8] That deal also included an agreement between the two exchanges to jointly list exchange-traded funds based on exchange's stock index.[9]

References

  1. GTSM marks 10th anniversary, aims to be island’s NASDAQ. China Post.
  2. Taiwan's Gre Tai Securities Market Teams up with Reuters to Launch the Government Bond Benchmark Index. Business Wire.
  3. ICAP and GreTai Securities Markets enter into strategic partnership to offer onshore US government bond trading in Taiwan. ICAP.
  4. Taiwan’s Gretai to merge into Securities and Futures July 1. China Post.
  5. Gordon Chen appointed stock exchange chairman. Taipei Times.
  6. Over-the-counter market booming in 2009. Central News Agency (Taiwan).
  7. GTSM Signs a MOU with Bursa Malaysia. GTSM.
  8. SGX, GreTai Securities Market to jointly develop capital markets. Channel News Asia.
  9. Taiwan, Singapore stock markets agree on dual listing of ETFs - report. XFN-ASIA.