Hassles, weak market limit attraction of Taiwan's licenses for foreign brokers

Article Abstract:

Foreign brokerage firms in Taiwan are reluctant to apply for licenses to trade directly on the stock exchange due to the weak market and limits on brokerage commissions. Average daily trading volume in 1995 is only about half what it was the previous year. Local brokerage commissions are also limited to 0.1425%, a far cry from the 1% foreign firms typically charge. As a result, only about one-third of foreign brokerage firms applied for licenses to trade directly on the exchange after Taiwan's Securities and Exchange Commission loosened its rules in 1994.

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Rule on fund allocation in Taiwan is unwelcome

Article Abstract:

Foreign investors are reacting negatively to Taiwan's rules on fund allocation. The rule requires foreign institutional investors to put 75% of the capital they introduce into stocks. The level has to be reached three months after gaining approval to invest in the local exchange and has to be maintained for the duration of the investor's stay in the country. Critics warn that the rules will eventually drive away investors and add that the rules are discriminatory since they do not apply to local investors.

Securities & Commodities Exchanges, Securities and Commodity Exchanges, Administration of General Economic Programs, Security and commodity exchanges, Regulation of Dom Invest by Foreign, Foreign investments, Economic policy, Institutional investments, Foreign investment laws

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Malaysia reforms may hurt shares of local brokers

Article Abstract:

Reforms in the Malaysian stock market may prove disadvantageous to stockbrokers. Stockbrokers trading for institutional clients will be hardest hit by the reforms. Under new regulations on stock trade commission rate, transactions worth between 500,000 and two million Malaysian dollars will be charged a 0.75% commission while those greater than two million Malaysian dollars will be charged a 0.5% commission.

Securities & Commodities Regulatn, Security brokers and dealers, Stock-exchange, Stock exchanges, Malaysia, Commissions (Compensation), Commissions (Fees)

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