The Taiwan Monthly

Intermediaries Service

Securities firms and custodian institutions are allowed to conduct net settlement of buy and sell transactions

The Taiwan Stock Exchange (TWSE) has introduced a new measure allowing securities firms and custodian institutions to conduct net settlement based on the total buy and sell amounts across all transactions, instead of settling individually for each client. In other words, on the settlement day, custodian institutions only need to make one transfer on a per-securities firm basis, eliminating the need for individual payments for each client.

 

This change, aimed at improving efficiency and reducing settlement costs, has been implemented on December 2, 2024. Securities firms and custodian institutions can choose whether to adopt this new approach, depending on their agreement. Preliminary data suggests that adopting the new measure could save up to 75% in related costs.