On August 11, the Taiwan Stock Exchange (TWSE) announced three favorable measures hoping to make the Taiwan Innovation Board (TIB) the first choice for innovative companies to list in the Asia-Pacific region, including: relaxing the qualification of legal persons, lowering the threshold of the financial proof for natural persons to NT$5 million, and rewarding securities companies for volunteering as market makers. These measures were enacted in order to expand the number of market participants and liquidity, stimulate the TIB, and enhance market competitiveness. The brief summary is as follows:
First, to facilitate the convenience of account opening by securities companies, the TWSE amended the qualification requirements for legal persons to include professional institutional investors or legal persons with more than two years of experience in stock trading. This was done mainly because legal persons have a higher risk-taking capacity.
Second, considering that the requirements for investors of the Innovation Board in neighboring Asian exchanges are loosen than those of the TIB, the requirements of financial abilities for natural persons were amended from "more than NT$10 million" to "more than NT$5 million" in order to expand the number of qualified investors on the TIB.
Finally, to enhance the liquidity of the stocks on the TIB, the TWSE formulated a market-making system for the TIB and announced the addition of the “Taiwan Stock Exchange Corporation Rules Governing Market Makers and Liquidity Providers on Taiwan Innovation Board”, the “Taiwan Stock Exchange Corporation Standards for Granting of Transaction Charge Discounts to Market Makers on Taiwan Innovation Board”, and other related regulations. The TWSE will provide relevant incentives to encourage securities companies to serve as market makers on the TIB.