Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
≔ Menu
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. HomeRegulation news
  2. Taiwan: Sec lending ETFs barred from currency reform
Regulation news

Taiwan: Sec lending ETFs barred from currency reform


17 March 2016 Taipei
Reporter: Drew Nicol

Generic business image for news article
Image: Shutterstock
Exchange-traded funds (ETFs) involved in securities lending have been excluded from the latest round of regulatory reforms from the Taiwan Stock Exchange (TWSE) on dual-currency trading mechanisms.

Taiwan’s borrowers and lenders will miss out on the opportunity to branch into adding yuan certificates to ETFs, as opposed to being limited to the Taiwan dollar.

Investors can also convert from the ETF in one currency to another at a one-for-one conversion ratio.

The exchange aimed to “to satisfy investors' demands for diversified products and asset allocation in various currencies”, but deemed it necessary to exclude securities lending, among other transactions, from the amendments.

TWSE stated: “Added ETFs should be neither involved in day trades, margin transactions, borrowing of securities, and borrowing or lending money or used as collateral and underlying assets of warrants, nor subscribed or redeemed.”
← Previous regulation article

ESMA: EU market vulnerable to HQLA shortage
Next regulation article →

ESMA welcomes industry comment on SFTR
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →
Glossary terms in this article
→ Collateral

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →