Taipei Exchange

TPEx Business Report 2023

Part 1 - Major Achievements

(1) Promoted new companies into TPEx multi-tiered market

1. There were 26 new applicants for listing on TPEx Main Board and 72 new applicants for registration on Emerging Stock Market, including 54 applicants for Emerging Stock Board (ESB) and 18 applicants for Pioneer Stock Board (PSB). A combined total of 62 companies applied for GISA registration or counseling service.
2. As for the new entrants in 2023, 12 applicants for listing on TPEx Main Board, 37 applicants for registration on Emerging Stock Market, and 38 applicants for registration on GISA or counseling service belonged to significant industries designated by the government, which totaled 87 companies.
3. TPEx visited 168 companies and held 27 seminars for both domestic and foreign companies to promote listing or registration on TPEx markets. Moreover, 51 GISA-related promotion activities were held or involved by TPEx.
4. TPEx continued to encourage TPEx listing applicants to promote and emphasize sustainable development.

(2) Continuously promote the sustainable development of the companies and build an ESG ecosystem in the capital market

1. Strengthened the quality of sustainability report disclosure and carried out spot check of sustainability reports.
2. Strengthened the management of sustainability report related institutions, establish quality inspection standards for assurance institutions and deficiency disposal measures.
3. To be implemented in stages by TPEx listed companies, the number of independent directors must not be less than one third of the board, independent directors may not serve more than three consecutive terms and there shall not be less than one director that is a different gender from the rest of the board. In order to improve the operation of the functional committees of TPEx listed companies, advocated companies to regularly conduct performance evaluations of these committees.
4. Compiled the " Handbook for GHG Emissions Disclosure " and place it on the "Greenhouse Gas Inventory webpage" of TPEx service portal website for reference by TPEx listed companies.
5. In response to the trend of ESG sustainable development, TPEx continued to collect the dynamic trends of sustainable development of foreign exchanges and improve it’s own sustainable practices. In addition, TPEx also continued to strengthen the quality of the sustainability report and complete its first annual GHG inventory, which received an accountant’s assurance report.

(3) In line with ESG strategies and sustainable development, promoted Sustainable Bond Market

1. 18 green bonds totaling NT$76.9 billion were issued and listed on TPEx in 2023.
2. 14 sustainability bonds totaling NT$31.2 billion were issued and listed on TPEx in 2023.
3. 12 social bonds totaling NT$34.7 billion were issued and listed on TPEx in 2023.
4. 3 sustainability-linked bonds totaling NT$4.4 billion were issued and listed on TPEx in 2023.
5. 13 media and press releases were issued, 15 promotional events were held, and visited 35 issuers, investors or underwriters were visited to disseminate the concept of sustainable investment and financing in 2023.
6. The listing mechanism of sustainable convertible bonds was launched.

(4) Promoted the bond market, new trading mechanism, and the diversification of investment products or services.

1. Established a dual-currency trading mechanism for TPEx listed ETFs.
2. Established a mechanism for the transmission of NTD NDF trading data from the TPEx’s TR system to the CCP of the Taiwan Futures Exchange.
3. Continued to track the performance of the market makers for TPEx listed stocks.
4. Released the " TIP Customized TPEx ESG Market Leader Total Return Index " and " TPEx FactSet Climate Resilience Index Series".

(5) Enforced securities market information security supervision and enhance cyber resilience.

1. Assisted securities firms to incorporate actual business operation verification into their off-site backup drills.
2. Run drills to ensure the continuous operation of information systems.
3. TPEx has passed ISO 27001 standard certification and obtained TAF mark.
4. Strengthened information security inspections of securities firms.

(6) Leveraging big data tools and supervisory technology to improve market management efficiency

1. Introduced big data application tools and held education and training workshops.
2. Conducted the POC and system implementation of big data applications.
3. TPEx made good use of digital technologies such as Robotic Process Automation (RPA) and visual data analysis tools to improve management efficiency.

(7) Promote the sustainable development transformation of securities firms

1. Hold promotional seminars.
2. Track the regular reporting to the board of directors by securities firms with a capital of NT$20 billion or more on matters related to sustainable development and the implementation of such matters.
3. Promote securities firms with a capital of NT$40 billion or more to obtain third-party information security verification and encourage information security personnel to obtain international or professional licenses.
4. Promote securities firms with a capital of NT$20 billion or more to prepare sustainability reports on schedule.
5. Promote the securities firm (stand-alone) or the integrated securities firm that is a subsidiary of a TWSE listed or TPEx listed company with a capital of NT$100 billion or more to disclose carbon inventory-related information.
6. Propagandized the securities firms to fulfill their responsibility of assisting TPEx listing applicants to promote and emphasize sustainable development.

Part 2 - Other Important Measures

1. TPEx enhanced the quality of IPO cases and assist high-quality domestic and foreign enterprises to engage in TPEx market.
2. TPEx advanced the Go Incubation Board for Startup and Acceleration Firms (GISA) and related businesses.
3. TPEx promoted corporate governance and enhanced market supervision mechanism to safeguard the interests of investors.
4. TPEx enhanced the trading and settlement mechanism for TPEx-listed stocks and emerging stocks, and promoted diversification of financial products.
5. TPEx strengthened market surveillance function and strictly crack down on illegal trading behavior.
6. TPEx promoted bond market development.
7. TPEx developed the OTC derivatives market.
8. TPEx strengthened the auditing and supervision over securities firms and leveraged transaction merchants.
9. TPEx maintained and enhance the efficiency, security, and stability of TPEx’s trading systems.
10. TPEx promoted international communication and cooperation and financial literacy education.
11. TPEx responded to material or abrupt events, strengthened risk management and ensured effective continuous operations.