The proprietary trading business of KGI Securities consists of transactions involving marketable securities on the stock market and OTC for capital gains. Securities traded include those in high-tech, finance, and traditional manufacturing. KGI Securities’ proprietary trading team has accumulated a wealth of experience in industry research and equity trading. With a solid knowledge base of market fundamental and technical analysis, our traders stay on top of industry trends. With the support of our research team, the proprietary trading team utilizes division of labor and collaboration to achieve profit targets.
Integration of the Securities and Futures Platforms
Following the internationalization and diversification of Taiwan’s securities and futures markets, restrictions have also been relaxed, resulting in an environment favorable to the proprietary trading business. Whether or not a firm can profit from this environment depends on whether it has a cross-border, cross-market trading platform. In 2013, following the merger between KGI Securities and Grand Cathay Securities Corporation (GCSC), the firms have integrated their securities and futures departments’ trading staff and systems to build a more efficient and more secure trading platform, greatly improving competitiveness.
Balancing Overseas and Domestic Investment
In the past, the proprietary trading department mainly traded securities listed in Taiwan, which took excessively high single-market concentration risk. After the competent authorities liberalized regulations governing trading in foreign securities, our proprietary trading department increased overseas trading to minimize concentration risk. Our overseas investments now account for a larger proportion of operations, resulting in a better balance between overseas and domestic positions, thus enhancing risk diversification.
Achieving Stable Returns
Traditionally, proprietary traders primarily focus on directional trading strategies. However, maintaining stable profits is difficult under such a strategy, as earnings are solely based on the judgments of individuals. KGI Securities’ proprietary trading team has integrated spot and futures resources to establish a new cross-national trading platform, which can be used to build an equity long-short portfolio. As a result, traders can follow changes in the market, assess the pros and cons of markets or instruments, and construct the most promising investment portfolio. Meanwhile, KGI Securities will continue to seek maximum profits from overall investments, all the while keeping risk at acceptable levels.