The Taiwan Stock Exchange (TWSE) is planning to hold a contest in which brokerages will compete with one another to see which one gets the most orders placed though Application Programming Interface (API) mechanisms.
The TWSE, which operates Taiwan's main stock market, said the competition is expected to encourage securities houses to provide their clients a streamlined process for placing trade orders through an API mechanism.
A total of 15 securities firms here have adopted the API mechanism since it was put in place in Taiwan in 2015 as part of their efforts to speed up transactions, the TWSE said.
The API, which is a software-to-software interface that helps online data transmission, serves as a bridge between investors and brokerage computer systems.
Its acts as a speedy vehicle for investors to place orders by enabling them to place orders directly via the Internet with securities firms' trading systems rather than going through a broker.
The TWSE said it has produced a four-minute video in easy-to-understand language that explains the API mechanism and how investors can use the system to place orders.
According to the TWSE, the value of trades executed based on orders placed through the API mechanism in the past three months have ranged between NT$3.3 billion (US$105 million) and NT$3.7 billion a month, accounting for about 0.08 percent of total monthly turnover.
In August, the top five brokerages generating the highest turnover through their API systems were Yuanta Securities (???), KGI Securities (???), Fubon Securities (???), SinoPac Securities (???) and Capital Securities (???), the TWSE said.
The TWSE said the use of the API mechanism is expected to boost transactions and lift turnover in the stock market in the future.
Source: Focus Taiwan News Channel