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TPEx Plans to Integrate IRS into Electronic Trading to Improve Yield Curve Accuracy
Finance · Investment Banks/Brokers · economic_daily · 2026-11-05
The Taipei Exchange aims to boost market transparency by moving interest rate swaps to an electronic platform, part of a broader plan to double bond issuance by 2030.
What Happened
Electronic Trading Initiative: Taipei Exchange (TPEx) Chairman Chien Li-chung announced plans to integrate interest rate swaps (IRS) into the electronic trading system. This move is designed to address the distortion of the yield curve caused by low trading volumes in the government bond electronic market.
Market Participation: Chien noted that the infrastructure for electronic trading is already in place, with the primary challenge being the shift in market trading habits. The exchange intends to focus on mainstream IRS tenors and is seeking regulatory support to encourage broader industry participation.
Strategic Five-Year Plan: The TPEx has launched a five-year strategy covering supply, trading, and investment to reach a target of NT$3.8 trillion in bond issuance by 2030. Key initiatives include the development of climate transition bonds and the inclusion of FABNs in the professional international bond market.
Regulatory Coordination: Achieving these ambitious growth targets requires significant inter-agency coordination and regulatory updates, particularly regarding pre-issuance trading for international bonds. Chien emphasized that the exchange will remain flexible and adjust its targets if policy progress falls short of expectations.