Representatives of the member stock exchanges of the East Asian and Oceanian Stock Exchanges Federation met on May 12, 1998, in Taipei, in continuation of their mutual cooperation, and issued the following:
there have been significant developments affecting stock markets in the East Asian and Oceanian region, such as liberalization of trade policies and capital flows, the increase in privatization initiatives and other corporate fund raising activities, and rapid progress of information technology;
these developments have implications which include the creation of new demands for the international use of securities or other financial derivatives;
the potential for market integrity concerns is compounded by the increasingly global nature of market facilities, including pricing and clearing facilities and by diversified regulatory requirements; and
the Exchanges should take steps to address the international implications for the maintenance of market integrity, cooperation on market surveillance, market transparency and other market developments.
the Exchanges should share surveillance information on relevant products to manage a market crisis, to the extent permitted by their laws, rules and regulations, and/or contracts;
the Exchanges should share information on the market conditions and the regulatory actions taken or to be taken in order to prevent the spread of destabilizing effects among the Exchanges;
such information to be shared should be obtained by the requesting Exchange for regulatory purposes only, and should not be used for any other purpose; and
the Exchanges shall keep confidential the request for information and the information exchanged, consistent with requirements including the laws and regulations in force in the jurisdiction of the requested Exchanges, and with the domestic laws and regulations in force in the jurisdiction of the requesting Exchanges.
greater cooperation among the Exchanges and closer communication among relevant personnel both on a routine and on an ad hoc basis; and
collaboration among the Exchanges on entering into bilateral agreements concerning such cooperation.