In order to provide investors with a more diverse range of products and asset allocation instruments in different currencies, the Taipe Exchange has dual-currency trading mechanism for ETFs (DCT-ETF). Under this mechanism, the issuer of a TWD ETF with foreign component securities is allowed to list beneficial certificates denominated in an additional currency. The ETF will then be listed and traded on the market in dual currencies. Currently the DCT-ETFs are available in TWD/USD and TWD/CNY.
In addition to buying and selling the DCT- ETFs on the market, investors can also convert TWD ETFs they hold to USD ETFs or CNY ETFs, and vice versa. The trading, clearing and settlement of DCT-ETFs in different currencies are handled separately, i.e. a TWD ETF is settled in TWD, and a USD ETF is settled in USD.