Taiwan

Taiwan’s financial markets are large in size and comprehensive in nature, but still limited in liquidity. The domestic equity, fixed income and currency markets are substantial on a primary basis but strict regulations on foreign investment and currency convertibility have impacted secondary activity. This, in turn, has slowed the creation of local derivatives, most of which are in the very preliminary stages of development. As deregulation generates more active secondary participation and the primary markets continue expanding, further domestic derivative innovation and participation is anticipated.