Along with the booming of internet, many enterprises have modified their business models accordingly, which then has influenced the trend and direction of many industries. In the securities market, investors could utilize internet to obtain order information more easily and completely. Especially, with the easy access of foreign securities information through internet, investments transactions are becoming globalized too. Traditional trading support no longer satisfies investors’ requirements. That has contributed to the global rise of electronic communications networks (ECNs). These new trading platforms make the competition among exchanges more severe. With the gradual opening of Taiwan’s financial market, the approaching of these new players becomes inevitable. We study the impact of ECN on the trading structure of Taiwan’s securities market, based on the trading contents, trading methods, and trading support requirements. We first analyze the impact of ECN on the trading structure of United States securities market. Current trading structure of Taiwan’s securities market is then analyzed for stocks, bonds, and futures separately. We also develop an experimental ECN with the negotiation mechanism. The system is then tested by several trading experts. Their answers to our survey are summarized as our conclusion.
Jou, Chichang and Chen, Ming-Hung, "The Impact of ECN on the Trading Structure of Taiwan's Securities Market" (2002). ICEB 2002 Proceedings. 168.