Important Measure April 2023
2023-06-07
Important Measure April 2023
1. FSC signs MoU with the Ontario Securities Commission on the Supervision of Qualified Central Counterparties
In March 2023, Taiwan's Financial Supervisory Commission (FSC) signed a Memorandum of Understanding (MoU) with the Ontario Securities Commission (OSC) of Canada, to establish cross-border supervisory cooperation and information exchange with respect to the Taiwan Futures Exchange Corporation (TAIFEX) applying for exempted clearing agency status as a qualified central counterparty (QCCP) in Ontario. This MoU 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 TAIFEX to apply for 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 helps TAIFEX meet the criteria for exemption from the OSC’s regulatory requirements for recognition. Once TAIFEX obtains the exemption, Canadian financial institutions will be able to settle transactions through TAIFEX’s clearing service and enjoy preferential capital requirements, thereby effectively enhancing their capital efficiency.
In addition, TAIFEX was recognized by the European Securities and Markets Authority (ESMA) as a third-country central counterparty (TC-CCP) on 31 December 2022. TAIFEX was granted No-Action Relief by the U.S. Commodity Futures Trading Commission (CFTC) on 15 September 2022 and is 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. These ongoing developments are expected to increase the willingness of foreign investors to participate in Taiwan's financial market and boost market confidence.
The FSC will continue its efforts to enhance Taiwan's international financial regulatory cooperation network and build diverse, innovative, secure, and efficient capital markets, to attract foreign investment to Taiwan's financial market and enhance its international competitiveness and visibility.
1. FSC signs MoU with the Ontario Securities Commission on the Supervision of Qualified Central Counterparties
In March 2023, Taiwan's Financial Supervisory Commission (FSC) signed a Memorandum of Understanding (MoU) with the Ontario Securities Commission (OSC) of Canada, to establish cross-border supervisory cooperation and information exchange with respect to the Taiwan Futures Exchange Corporation (TAIFEX) applying for exempted clearing agency status as a qualified central counterparty (QCCP) in Ontario. This MoU 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 TAIFEX to apply for 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 helps TAIFEX meet the criteria for exemption from the OSC’s regulatory requirements for recognition. Once TAIFEX obtains the exemption, Canadian financial institutions will be able to settle transactions through TAIFEX’s clearing service and enjoy preferential capital requirements, thereby effectively enhancing their capital efficiency.
In addition, TAIFEX was recognized by the European Securities and Markets Authority (ESMA) as a third-country central counterparty (TC-CCP) on 31 December 2022. TAIFEX was granted No-Action Relief by the U.S. Commodity Futures Trading Commission (CFTC) on 15 September 2022 and is 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. These ongoing developments are expected to increase the willingness of foreign investors to participate in Taiwan's financial market and boost market confidence.
The FSC will continue its efforts to enhance Taiwan's international financial regulatory cooperation network and build diverse, innovative, secure, and efficient capital markets, to attract foreign investment to Taiwan's financial market and enhance its international competitiveness and visibility.
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Update：
2023-06-07