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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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