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FSC eases restrictions on banks'' concurrent conduct of proprietary trading of bonds

2021-09-08
On 21 July 2021, the FSC amended the "Rules Governing Applications by Banks (Including Offshore Banking Units) to Concurrently Conduct the Underwriting and Trading of Bonds, Beneficiary Securities, and Asset-Backed Securities." The amended Rules expressly require that when a bank engages in proprietary trading of foreign securities with an overseas affiliated enterprise, the bank's "calculation basis for securities investments" will be used to determine transaction limits. The amended Rules also ease the restriction on a bank's acquisition of corporate bonds issued by an overseas banking subsidiary. These changes help Taiwanese banks to build bigger positions in their proprietary bond trades, and allow for the overseas subsidiaries of Taiwanese banks to provide investors in Taiwan with a diverse range of financial products through the parent bank.
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  • Update: 2021-09-08
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