ABN AMRO Bank is considering attempting to smooth its application to issue warrants in Taiwan by appealing to senior Ministry of Finance officials directly, rather than continue waiting for the Securities and Futures Commission and Bureau of Monetary Affairs, the banking regulator, to make a decision. It has already been waiting for nearly six months and is the first foreign bank to have applied, said an ABN official. The SFC and the Bureau both report to the Ministry of Finance. Officials at the SFC and Bureau of Monetary Affairs declined comment. English-speaking officials at the Ministry of Finance could not be found by press time.
The Bureau of Monetary Affairs seems to be holding the application process up, according to a Taiwan Stock Market official in Taipei familiar with the application. It has not replied to letters sent by the SFC over the last couple of months seeking confirmation that it will approve qualified applications. The Bureau of Monetary Affairs, which has limited experience with warrants and other derivatives, is considered far more cautious regarding their use than the SFC. The Ministry of Finance may be more receptive to smoothing the way for foreign banks to issue warrants since a former SFC chairman, Lin Tzong-yeong, was promoted last month to administrative vice finance minister at the Ministry of Finance, he said.
Taiwan's warrant market is of great interest to foreign banks, including major players like Deutsche Bank, which is preparing to apply but wants other banks to test the waters first. Officials say the market is attractive because there is not yet a developed over-the-counter equity derivatives market, and because Taiwanese are active investors.
