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The argument of organizational types, company and membership,
has been an issuein the Taiwan Stock Exchange for many years.
Will the current company form of the Taiwan Stock Exchang, for
example, suit the need of the future? In addition, for futures
exchange, which organizational type will better meet
international competition is also an important issue. Therefore,
it is worthy to research the organizational types of exchanges
which serve public interest,in the meantime taking into account
of legal factors and international competiton.This research
finds out that in the formation of a foreign exchange, the
factors of public interst, self-regulatory function, the ability
to operateinternational buseness, capacity of future growth and
stability are considered.Empirical findings tell us that trading
methods of futures exchanges and the clearing and settlement
mechanisms have a considerable impact on the trading volume of
futures contracts. This is a critical factor in the reform of
the organization of a futures exchange.This research also deals
with other related issues of the Taiwan InternationalMercantile
Exchange and gives seveal suggestions as following:1.Follow the
four principles, namely public interest, self-regulation, non-
profit-seeking and internationalization.2.Increase the ratio of
board of directors representing public interst.3.Insert a
special chapter of non-profit seeking company in the current
company law.4.Enhance education to ensure better self-
discipline and self-regulation in FCMs and securities firms.
5.Revise related laws and regulations to provide a free and fair
competition environment.6.Promote strategic alliances between
local exchanges and famous foreign exchanges.7.install proper
market segregation for better risk management.
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