Fri, Nov 23, 2007 - Page 11 News List

Integration of equity markets may have to wait until 2008

By Joyce Huang  /  STAFF REPORTER

The government's planned integration of the four local equities markets into one financial holding company may be shelved until a new legislature is elected early next year, a public hearing was told yesterday.

Opposition Chinese Nationalist Party (KMT) Legislator Alex Fai (費鴻泰) questioned the timing of the proposed four-in-one merger of Taiwan Stock Exchange Corp (TSE), Taiwan Futures Exchange Corp, GRETAI Securities Market and Taiwan Depository and Clearing Corp through share swaps when electoral campaigns are in full swing.

Fai said such a proposal should be left to the next legislature and that a consensus had been reached among opposition parties.

At yesterday's public hearing, academics including professors Chou Tien-chen (周添城) and Wang-Lien Chang-fu (王連常福), urged the financial regulator to increase the TSE's initial capital after the merger is completed to dilute the stockholdings of the original shareholders, as concerns were raised that they may try to secure large stakes in the new financial holding company to monopolize it before it goes public.

Meanwhile, the Financial Supervisory Commission (FSC) yesterday announced legal revisions that decreased the initial capital required by the nation's futures brokers.

Futures brokers were originally required to hold a minimum capital of NT$200 million, which will now be lowered to NT$100 million in accordance with the proposed revisions.

Futures brokers are also required to put down a guaranteed deposit of NT$50 million, which will also be halved.

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