Introduction
1.Registration Requirement
Banks may apply for registering their gold to trade on Gold Trading Platform. Banks are required to act as the market maker of their own gold products and are delegated to be custodian by Taiwan Depository & Clearing Corporation (TDCC).
2.Trading Mechanism
“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 “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. Trading unit is 1 Taiwan Tael (37.5 grams) gold with a purity of 99.99%. Quoting unit is1 Taiwan Cian (3.75 grams)
Once a transaction is completed on “Gold Trading Platform”, TPEx will notify TDCC of trading details. TDCC will then carry out the subsequent payment and settlement operations. Buyers and sellers complete settlements with TDCC on T+2 day. If both sides agree, settlements will be completed on the trade day.
For details, please refer to the overview.