TWSE aims to boost e-order placing to 70% in 4 years

The Taiwan Stock Exchange has set a goal to boost electronic order placing to 70 percent of the total value of equity orders placed in Taiwan in four years.

As of the end of July, orders placed electronically in the local equity market accounted for 47.47 percent of the total value of orders placed, up from 41.1 percent as of the end of 2015 after the TWSE made a concerted effort to promote e-order placing in a bid to speed up the pace of transactions, the exchange said.

In terms of the volume of orders, the TWSE, which operates the local main board, said that orders placed electronically represented 51.71 percent of the total as of the end of July, up from 48.3 percent recorded at the end of 2015.

The TWSE said that the increase in popularity in e-order placing in the local equity market showed that investors have been aware of the advantage of the electronic system through which investors are able to place their orders anywhere and anytime.

The TWSE added that the e-order placing mechanism is able to shorten the transaction time and also cut transaction costs. The exchange pointed out that the higher awareness of the e-order placing system was the result of the government's efforts to push for financial technology (FinTech) development.

With a higher aim, the TWSE said that it has expected that the e-order placing ratio in terms of value will rise further to 70 percent in 2020 through greater efforts in FinTech.

To achieve such a goal, the TWSE is planning to hold competitions on simulated transactions through e-order placing to boost investors' interest in the particular high-tech mechanism, while the exchange will dole out incentives to encourage more investors to adopt e-order placing.

In addition, the TWSE will come up with promotional campaigns on college campuses for e-order placing, the exchange said.

The TWSE has launched a competition for securities houses, which kicked off Jan. 1 and will run through Sept. 30, to boost e-order placing.

Any brokerage which had e-orders account for no less than 50 percent of the total value of its orders placed and which is able to boost the ratio by more than 5 percentage points during the nine month period could be a winner in the competition, the TWSE said.

The top five winners will be honored by financial authorities for their contribution to Taiwan's FinTech development, the TWSE said.

Source: Focus Taiwan