Thu, Oct 04, 2007 - Page 12 News List

Cabinet proposes state-run exchange firm

INTERNATIONAL TREND Many major stock exchanges worldwide are controlled by state-owned companies, Securities and Futures Bureau head Wu Tang-chieh said

By Jimmy Chuang  /  STAFF REPORTER

The Cabinet proposed an amendment yesterday that would see the "Taiwan Securities Exchange Financial Holding Corp" (台灣交易所控股公司) established sometime next year.

"The new company will help Taiwan's stock exchange become more international," said Wu Tang-chieh (吳當傑), director-general of the Financial Supervisory Commission's Securities and Futures Bureau.

Wu made his remarks at a press conference after yesterday morning's Cabinet meeting.

He said that major stock exchanges around the globe such as those in Germany, Italy, Hong Kong and Singapore, are controlled by state-owned companies similar to the "Taiwan Exchange Finance Holding Corp."

These companies help the markets merge or build links with their foreign counterparts.

"If we can establish an alliance with foreign stock markets, we will be able to increase profitability. That's a good thing for most investors," Wu said.

The director-general continued by saying that the company would gradually replace the Taiwan Stock Exchange Corp and its units.

To implement the change, the Cabinet has amended Article 128 and Article 177 of the Securities and Exchange Act (證券交易法).

It has submitted the amendments to the Legislative Yuan for approval.

"Taking into consideration the amount of time it will take the legislature to review and approve the amendment, we are hoping that everything will be completed sometime next year," Wu told the press conference.

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