Taiwan Stock Exchange (TWSE) and Korea Exchange (KRX) signed a memorandum of understanding (MOU) on Friday combining their exchange-traded fund (ETF) markets.
The two stock exchanges signed the memorandum in hopes of further developing stock and capital markets.
According to Financial Supervisory Commission Chairman Tseng Ming-chung, the memorandum will allow Taiwan’s ETF market to diversify. The memorandum will allow the import of more foreign financial products, which Tseng said will be beneficial to market development.
Tseng said the average daily turnover in the ETF market is between NT$6-7 hundred million. According to Tseng, ETF transactions account for 7.1% of trading on Taiwan’s stock market, up from 0.17 in 2003.