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TWSE to launch warrant trading disclosure platform

2012/06/29 18:16:11

Taipei, June 29 (CNA) The Taiwan Stock Exchange (TWSE) said Friday that it will launch an information disclosure platform for domestic warrant trading in July in a bid to strengthen the transparency of that particular market.

The TWSE said it has entrusted academics to develop a model that can be used to calculate a wide range of trading information on warrant trading, adding that the information will be released on theplatform.

The exchange said it will be the first trading information disclosure channel in the world developed by an independent group instead of the warrant issuers themselves, and added that the move is expected to provide information that reflectsunbiased true market reality.

In the new disclosure platform, investors will be able to gain access to the information on a warrant, such as the name of the underlying stock and the code of the warrant, the time to expiry, the exercise price and the liquidity of the market, according to the TWSE.

The platform will also reveal whether the market price of a warrant is higher than the exercise price or lower than the market price, the exchange added.

In addition, the platform will disclose the implied volatility of a warrant and the future volatility, which is calculated by the model based on the latest closing price, to help investors make transactiondecisions, the TWSE said.

The exchange said the information disclosure platform, accessible at http://warrants.sfi.org.tw, is part of efforts by the local financial authorities to improve warrant transactions after Taiwan began warrant trading 15 years ago.

In 2011, the monthly average of investors participating in local warrant trading totaled 35,165, up from 25,639 recorded in 2010.

In the first five months of this year, the monthly average of investors in the warrant market stood at 29,995 due to volatility on the global financial markets amid concerns over the debt problems in the eurozone.

(By Tian Yu-pin and Frances Huang)
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