The China Post
Date: October 22, 2016
TAIPEI — The Taiwan Stock Exchange (TWSE) has urged investors to use its “trade-to-trade” simulation platform to gain familiarity with the securities trading mechanism that has gained popularity in global markets.
The exchange is making the appeal as it plans to extend the use of the “trade-to-trade” mechanism it currently uses for the warrants market to all securities.
In many stock markets, a “call auction” mechanism is used to match potential buyers and sellers of shares. Buy and sell orders are collected over a fixed period (which in Taiwan is five seconds) and are matched up at the end of the period.
Under a “trade-to-trade” system, however, buy and sell orders are matched up as soon as they are reported to the exchange, leading to trading on a real-time basis without any lag. [FULL STORY]