Weekend Taifex Omnibus Accounts

Oct 28th, 2006 | By wenzi | Category: Taiwan Equities

In the past few years Taiwan has introduced measures to increase international institutional order flow. Removal of the QFII system in 2003, and the introduction of the block trading in 2005 has made the market place friendlier to international institutional investors.

One of the biggest recent changes has been the introduction of Omnibus accounts. The first foreign-owned broker to establish an omnibus account with the Taiwan Futures Exchange (TAIFEX), was Calyon Financial in the spring of 2006.

An Omnibus account is simply an account between two futures merchants (brokers) on the behalf of customers. Omnibus trading accounts allow institutional investors to remain anonymous because the futures merchant executes the trades for investors. Transaction of individual accounts which are pooled in this type of account, and are exececuted in the name of the futures merchant.

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