The Taiwan Monthly

Oct. 2020

Global Connection

Taiwan, Japan, and South Korea stock exchange heads gather online to strengthen cooperation

International cooperation remains uninterrupted during the pandemic prevention period as the capital market leaders from Taiwan, Japan and South Korea, including Jan-yau HSU, Chairman of the Taiwan Stock Exchange (TWSE), Akira Kiyota, Group CEO of the Japan Exchange Group (JPX) and Jiwon Jung, Chairman of the Korea Exchange (KRX) met in a cloud video conference on September 9, 2020. In the meeting, the three exchanges shared recent capital market developments as well as their response measures for COVID-19. The Taiwan Stock Exchange also introduced important systemic changes this year including continuous trading and intraday odd-lot trading. The leaders expressed support and confidence in the three-way cooperation, aiming that through strengthening the ties between the three exchanges, the international visibility and value of these markets can be promoted.


Close interactions began among the TWSE, JPX and KRX since the signature of a trilateral Memorandum of Understanding (MOU) in 2018. The Taiwan Stock Exchange took the lead by inviting top executives of the JPX and KRX to visit Taiwan and hosted the first CEO meeting in March last year. Consensus on specific cooperation was reached, and the deep friendship between the three exchanges were established. The meeting also contributed to the ESG workshop held in Tokyo in September 2019; through experience sharing among the different markets, the ESG quality of these markets could be jointly improved. This year's CEO meeting was hosted by the Korea Exchange. Originally, it was anticipated the meeting would be canceled due to the severe conditions of the COVID-19 pandemic. Only given the joint efforts of the three exchanges, facilitated by the power of technology, could this online meeting occur. The three exchanges also shared their experiences in maintaining stable capital market operations while continuing to expand their businesses during the pandemic.


Cooperation between Taiwan and Japan and between Taiwan and South Korea has made significant progress in recent years, including product cross-listings, joint marketing, and talent exchanges. Since 2016, the three markets have embarked on a large-scale expansion of product cross-listings. In 2017, the TWSE and KRX jointly compiled the “IT Premier Index”, focusing on the respective IT industries that are the pride of both markets. Currently, investors can trade ETFs in the Taiwan market that track benchmark indexes of Japan and South Korea (such as the TOPIX and KOSPI 200). Investors in Japan and South Korea can also easily invest in the Taiwan market by trading products such as ETFs and futures in their respective local markets that track the TAIEX Index. Greater cooperation is expected in terms of product and index cross-listings, with product links expanded with the Japanese and Korean markets. In respect to joint marketing, the Taiwan Stock Exchange regularly participated in “IR Festa”, an annual investor fair held by JPX since 2015. The TWSE also sends experts to Seoul to participate in the “Global ETP Conference” every year, promoting Taiwan’s capital markets and encouraging exchanges of talent between the two sides.


Taiwan has long-term cooperation with major global markets and regional exchange partners in the areas of products, systems, and talent cultivation. Even in the face of fierce competition in capital markets, the TWSE insists on building a long-term future for market connections through mutually beneficial international connectivity. Since the beginning of the year, business travel has been nearly shut down entirely due to the raging COVID-19 pandemic. This made the online meeting between the TWSE, JPX and KRX all the more special. The three major players of Taiwan, Japan and South Korea gathered once more to look ahead toward consolidating interaction and partnership in the future, renewing innovation in the capital markets, and achieving triple-win.


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