TAIPEI — The Taiwan Stock Exchange (TWSE) said Friday that it will launch an information disclosure platform for domestic warrant trading in July in a bid to strengthen the transparency of that particular market.
The TWSE said it has entrusted academics to develop a model that can be used to calculate a wide range of trading information on warrant trading, adding that the information will be released on the platform.
The exchange said it will be the first trading information disclosure channel in the world developed by an independent group instead of the warrant issuers themselves, and added that the move is expected to provide information that reflects unbiased true market reality.
In the new disclosure platform, investors will be able to gain access to the information on a warrant, such as the name of the underlying stock and the code of the warrant, the time to expiry, the exercise price and the liquidity of the market, according to the TWSE.
The platform will also reveal whether the market price of a warrant is higher than the exercise price or lower than the market price, the exchange added.
In addition, the platform will disclose the implied volatility of a warrant and the future volatility, which is calculated by the model based on the latest closing price, to help investors make transaction decisions, the TWSE said.