PASLA: Taiwan to further update SBL model
07 March 2018 Hong Kong
Image: Shutterstock
Taiwan is set to make further updates to its securities borrowing and lending (SBL) model this year, according to a panellist at the 15th Annual Pan Asia Securities Lending Association Conference.
The panellist discussed the current SBL model in Taiwan, revealing that in 2018 it plans to make post-trade processes more efficient by establishing a pre-matching system as well as an information-exchange platform to increase the efficiency of daily trading between brokers and custodian banks.
Last year, Taiwan also made steps to improve its SBL model. As part of the update, it introduced extended trading hours, released an SBL daily short selling limit, introduced relax qualification for participating systems as well as extending the rollover time from once to twice.
Based on the upcoming changes and those already made in 2017, another panellist suggested that the “changes we have seen are very positive”. They suggested that the rollover has been difficult to handle, so the extension was “great for us”.
The panellist said: “Increasing the quota from 20 to 30 percent is a big increase.”
According to a panellist, the Taiwan SBL market has remained stable for the last six years showing growth year-on-year since 2012.
During the panel, delegates were asked which market requires the most work to develop to full lender participation via an interactive voting system.
Taiwan was joint top with Malaysia at 37 percent. Thailand was in third place with 27 percent of the votes, followed by India with 3 percent.
The panellist discussed the current SBL model in Taiwan, revealing that in 2018 it plans to make post-trade processes more efficient by establishing a pre-matching system as well as an information-exchange platform to increase the efficiency of daily trading between brokers and custodian banks.
Last year, Taiwan also made steps to improve its SBL model. As part of the update, it introduced extended trading hours, released an SBL daily short selling limit, introduced relax qualification for participating systems as well as extending the rollover time from once to twice.
Based on the upcoming changes and those already made in 2017, another panellist suggested that the “changes we have seen are very positive”. They suggested that the rollover has been difficult to handle, so the extension was “great for us”.
The panellist said: “Increasing the quota from 20 to 30 percent is a big increase.”
According to a panellist, the Taiwan SBL market has remained stable for the last six years showing growth year-on-year since 2012.
During the panel, delegates were asked which market requires the most work to develop to full lender participation via an interactive voting system.
Taiwan was joint top with Malaysia at 37 percent. Thailand was in third place with 27 percent of the votes, followed by India with 3 percent.
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