Trading on emerging market resumes after 2-hour glitch

Trading on the local emerging market resumed after a suspension of almost two hours due to computer glitches Thursday morning, according to the Taipei Exchange (TPEx).

The TPEx, which operates the emerging market and the over-the-counter market in Taiwan, said that trading was forced to halt at around 9:10 a.m., 10 minutes after daily trading started, when the market's computer system suffered irregularities that caused a failure in communication between the trading floor and securities firms.

The TPEx said that even though the exchange rebooted the computer system several times, the glitches continued, adding that what happened had not been seen before.

After a spare computer system was brought into use by the TPEx, trading resumed at around 11 a.m., the exchange said. Due to the halt in trading, turnover on the emerging market will no doubt be affected, the TPEx added.

A day earlier, turnover in the emerging market stood at NT$698 million (US$21.95 million).

The TPEx said it has launched an investigation to find out the cause of the computer glitches.

According to data released by the TPEx, as of Nov. 14, a total of 271 companies had been listed on the emerging market. As of Nov. 14, 54 companies had offered their shares on the emerging market for trading as of Nov. 14, with an additional five lining up for listings, the TPEx said.

Under local securities trading rules, a company is required to list its shares on the emerging market for no less than six months before deciding to go to the main board or the OTC market.

A listing of Taiwan High Speed Rail Corp. (THSRC, ????) on the Taiwan Stock Exchange on Oct. 27 is one of the prominent examples. Prior to its listing, the sole high speed railway operator had been listed on the emerging market.

Source: Focus Taiwan News Channel