Sat, Jul 10, 2004 - Page 10 News List

TAIFEX breakdown prompts complaint

By Joyce Huang  /  STAFF REPORTER

The Taipei Futures Association yesterday urged authorities set up a system to compensate investors in cases of mechanical or computer failure at the nation's exchanges.

The appeal came one day after a network breakdown at the Taiwan Futures Exchange (TAIFEX, 台灣期貨交易所) disrupted market transactions for almost half an hour,

"In addition to improving its computer system, the TAIFEX should consider setting up a compensation channel," association chairman Steve Wang (王中愷) was quoted as saying in the local Chinese-language media.

But Wu Tang-chieh (吳當傑), head of the securities and futures bureau under the Financial Supervisory Commission, called the proposal unfeasible, noting that there was no evidence of human negligence in the breakdown.

"No legal codes stipulate that compensation should be made under such circumstances," Wu said yesterday, adding that markets in other countries don't offer compensation for computer-system malfunctions.

Wu praised the TAIFEX for showing sincerity on Thursday when it said it would allow investors to claim compensation if their suffered an investment loss as a result of the breakdown.

TAIFEX officials apologized on Thursday for the software malfunction, which shut the market's online transactions and benchmark listings.

According to the TAIFEX, a total of 11 transactions were sus-pected to have been disrupted by the breakdown but were later proven to be all right.

The TAIFEX authorized futures brokers to look into any complaints and come up with compensation applications in the near future. As of the press time yesterday, officials said that no official applications for compensation had been received.

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