Gold product is an ideal medium for preserving value in the case of inflation. In order to diversify investment for investors, Taipei Exchange launched “Gold Trading Platform” based on Emerging Stock Market trading mechanism starting from 5th Jan., 2015. Market makers quote and trade through this platform. Investors are able to utilize their existing security trading account to trade gold, helping investors to diversify their asset allocation.
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).
“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.
1. Physical Gold Product
Offered by Bank of Taiwan:
Offered by First Commercial Bank:
2. Physical Gold Withdrawal Requirement
Investors may apply for withdrawing their gold booked on their passbooks with brokers and take physical gold from gold custodian banks. However, the physical gold withdrawn from the Gold Trading Platform is not allowed to put back. Withdrawal unit is 1 Taiwan Tael.
3. Withdrawal Fee
The withdrawal Fee is charged by the custodian bank when the physical gold is withdrawn. Foe details of withdrawal requirement, please refer to the links below.
Q1：How to use a security trading account?
A1: After signing the “Gold Risk Disclosure Statement”, investors are able to utilize their existing security trading accounts to trade gold. The trading records are listed on TDCC(Taiwan Depository & Clearing Corporation) passbooks.
Q2：What is the main difference between using a security trading account and using a Bank Gold
Passbook(New Taiwan dollar denominated) to trading gold?
1. The Competent Authority:
3. August 15, 2016, amendment of trading mechanism of Gold