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FSC signs MoU with the Ontario Securities Commission Related to the Supervision of Qualified Central Counterparties

In March 2023, the Financial Supervisory Commission, Taiwan (FSC) entered into a Memorandum of Understanding (MoU) with the Ontario Securities Commission (OSC), Canada, to establish cross-border supervisory cooperation and information exchange with respect to the Taiwan Futures Exchange (TAIFEX) applying for Exempted Clearing Agency in Ontario. This agreement expands the scope of financial regulatory cooperation between Taiwan and Canada following the signing of the Fintech Cooperation Agreement between the FSC and the financial regulatory authorities of 8 provinces in the Canadian Securities Administrators (CSA)in June 2020. The MoU will deepen the linkages and cooperation between Taiwan and Canada and help enhance the safety, efficiency, and competitiveness of Taiwan's financial market.
To attract foreign financial institutions to participate in the central clearing business in Taiwan, the FSC has encouraged the TAIFEX to apply for Qualified Central Counterparty (QCCP) status from regulatory authorities in various countries. The MoU between the FSC and the OSC establishes a cooperative relationship for the financial supervision of cross-border clearing agencies, and it allows TAIFEX to meet the criteria to be exempted from recognition under OSC’s regulatory requirements. When the TAIFEX gets the exemption , Canadian financial institutions will be able to settle transactions through TAIFEX’s clearing service and manage the counterparty risk efficiently with lower capital requirements, thereby effectively enhancing their capital efficiency.
In addition, the TAIFEX was recognized by the European Securities and Markets Authority (ESMA) as a third-country central counterparty (TC-CCP) on December 31st, 2022. On September 15th, 2022, TAIFEX was granted No-Action Relief by the U.S. Commodity Futures Trading Commission (CFTC) and has been seeking exemption from registration as a derivatives clearing organization (Exempt DCO) with the CFTC. Moreover, TAIFEX has submitted an application to the UK regulatory authority for recognition as a Non-UK CCP which is expected to increase the willingness of foreign investors to participate in Taiwan's financial market and boost market confidence.
The FSC continues to put efforts into expanding the international financial regulatory cooperation network and building a diverse, innovative, secure, and efficient capital market, attracting foreign investment into Taiwan's financial market, and enhancing its international competitiveness and visibility.

Contact: Mr. Lin Chia-Chang, Section Chief, Securities and Futures Bureau
Contact tel: +886 2 2774 7115.
For any further questions, please contact us at FSCMail
Visitor: 1625   Update: 2023-03-31