Yuanta market-making helps lift Taiwan ETF volumes

Clients report rise in ETF liquidity and tightened bid/offer spreads

Alex Huang
Alex Huang, Yuanta Securities

An unexpected reversal of the renminbi's appreciation against the US dollar earlier this year saw a number of Taiwan corporates experience significant losses from target redemption forward contracts. As a result, several established banks in Taiwan were punished by the Financial Supervisory Commission for selling inappropriate foreign exchange structures. In contrast, Taipei-based Yuanta Securities' equity derivative focus meant it sidestepped regulatory censure and could instead focus on growin