Nasdaq and Taiwan Stock Exchange (TWSE) have signed a memorandum of understanding (MoU) to promote mutual development and foster cooperation between the two companies. The memorandum paves the way for both sides to work closely together in expanding their ETF markets and facilitating the cross-listing of ETFs on both the Nasdaq and TWSE.
Nasdaq and Taiwan Stock Exchange sign memorandum of understanding
Sandy Fischer, vice chairman, Nasdaq, commented: “This memorandum has laid the groundwork for valuable and rewarding cooperation between TWSE and Nasdaq. Our goal is to strengthen our relationship further with one of Asia’s leading exchanges. We look forward to the opportunities and overall mutual benefits of partnering with TWSE.”
Nasdaq and TWSE will collaborate in mutual market promotion and the compilation of indices. The MoU will also help create closer ties between the Taiwanese and US capital markets, with initiatives such as bilateral visits, personnel training and exchanges to share experience and information.
As of 30 June 2017, Nasdaq had 348 ETPs from 39 issuers listed on its exchange. The largest ETF with a primary listing on the Nasdaq is the PowerShares QQQ (Nasdaq: QQQ) which tracks the tech-heavy Nasdaq 100 Index. The fund was launched in October 1999 and has assets under management of $53 billion with a total expense ratio of 0.20%. As of the end of July, TWSE reported a total of 81 ETP listings.
Chi-Hsien Lee, president of TWSE, commented: “We are pleased to have formalized our relationship with Nasdaq and we are excited about the opportunities ahead. As Taiwan adopts a global outlook on capital markets, the Taiwan Stock Exchange has been proactive in building alliances with overseas exchanges. We look forward to collaborating together for the development of both our institutions and the wider financial services industry.”
While the NYSE is still the dominant player in the US ETF listings market by some distance, trading outages and an increasing desire by issuers for diversification have helped rivals such as Nasdaq and Bats gain market share in the last few years.