Introduction
1.Registration Requirement
Banks may apply to register their gold to trade on the Gold Trading Platform. Banks are required to act as the market maker of their own gold products and are delegated to be custodians by the Taiwan Depository & Clearing Corporation (TDCC).
2.Trading Mechanism
The “Gold Trading Platform” is a quote-driven market. The Investor engages a securities broker to place a trading order on his/her behalf. Market makers should offer quote prices in trading hours (from 9:00 to 15:00) An order will be executed by the “Computerized Price Negotiation and Click System” as soon as it reaches the quotes. Market makers may directly execute those unmatched orders. One of the trading counterparties is the market maker. Both trading unit and quoting unit are 1 Taiwan Mace (3.75 grams) gold with a purity of 99.99%.
Once a transaction is completed on the “Gold Trading Platform”, TPEx notifies the TDCC of the trading details. The TDCC then carries out the subsequent payment and settlement operations. Buyers and sellers must complete settlements with the TDCC on T+2 day. If both sides agree, settlements are completed on the trade day.
For details, please refer to the overview.