The Taiwan Stock Exchange (TSE), Securities Investment Trust & Consulting Association (SITCA) and the Taiwan Securities Association (TSC) plan to launch commodity exchange-traded funds (ETFs) in the first half of 2014.
TSE president Michael Lin was quoted by Asia Asset Management citing China Times as saying that the authorities intend to diversify current offerings to include gold and oil ETFs so as to boost market liquidity.
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Lin said ETFs currently account for between 1.3% and 5% of transaction volumes on the exchange.
The daily ETF volumes could rise by 10% with the availability of commodity ETFs. To complement the product development, they are studying the use of inverse and leveraged ETFs that have enjoyed successfully run in markets such as Korea and Japan.
Inverse and leveraged ETFs, however, are still not available in Hong Kong.
At the end of November 2013, around 21 cross-border and domestic ETFs were listed on the Taiwan bourse at a rate of $4.65bn.
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