Taiwan Stock Exchange partners with US options exchange

Taiwan Stock Exchange has formed a partnership with MIAX Options Exchange.

Taiwan Stock Exchange (TWSE) has formed a partnership with a new North American options exchange, MIAX Options Exchange (MIAX), that was established at the end of 2012.

The pact will enable US exchange-traded fund (ETF) issuers to launch options on MIAX which track ETFs linked to TWSE-listed stocks.

TWSE hopes that this move will improve international links to the Taiwan capital markets and encourage more investors to trade Taiwan securities and increase volumes.

The exchange also wants to develop ETFs comprising of Taiwan securities. Taiwan ETF volumes have grown at a rate of 25% per year, reaching US$4.7 billion in the first half of 2013.

TWSE has signed similar accords with NYSE Euronext, NASDAQ-OMX Exchange, BATS Exchange and Hong Kong Stock Exchange. As a result of the Hong Kong relationship, dual-listed ETFs were introduced in Taiwan in the form of offshore ETFs and feeder fund ETFs four years ago.