Taiwan: MSCI will include Taiwan in the list of markets under review as part of the 2010 Annual Market Classification Review.
MSCI notes that there have been several positive market reform measures over the past months including the implementation of a T+2 delivery versus payment (DVP) settlement cycle. MSCI will solicit investors' feedback on their experience since these changes, in particular to understand to what extent pre-funding practices are being eradicated. Under the current MSCI market classification framework for Developed Markets, Taiwan meets the economic development as well as the size and liquidity requirements. Many market participants have expressed the opinion that the overall market accessibility of Taiwan is comparable to that of Korea. The lack of full convertibility of the New Taiwan Dollar and restrictions associated with the Foreign Institutional Investors (FINI) ID system are often raised as the main areas of concern where significant progress is still required.