Taiwan Futures Exchange

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Taiwan Futures Exchange (Taifex)
Taipex pic.jpg
Founded 1997
Headquarters Taipei, Taiwan
Key People Tony C. Fan, Chairman; Peter Chiu, President
Products Futures and options on equity indexes; options on equities; futures on government bonds and interest rates, and gold futures
Website www.taifex.com

The Taiwan Futures Exchange (TAIFEX) is a 100 percent electronic trading marketplace that currently offers futures and options on major Taiwan stock indices, government bond futures, equity options and 30-day commercial paper interest rate futures.[1] It offers interface compatibility for foreign FCMs to connect to the market. Foreign investors can participate in the TAIFEX futures market through direct accounts and omnibus accounts. The TAIFEX Clearing House is a department of the exchange.

The Taiwan Futures Exchange ranked as the world's 18th largest derivatives exchange by volume in 2021. Total volumes for the year were 392 million contracts, up 14.9 percent from 2020, according to the Futures Industry Association's volume rankings.[2]

The Taiwan Futures Exchange is a Primary Member of CCP Global, the global association of Central Counterparties (CCP), which represents 42 members who operate more than 60 individual CCPs across EMEA, the Americas and the Asia-Pacific region.[3]

History[edit]

TAIFEX was established in 1997 and began trading in July 1998.

TAIFEX was issued a Part 30 exemption by the Commodity Futures Trading Commission on March 23, 2007, which allows foreign boards of trade to solicit and accept orders from U.S. customers without registering with the CFTC.[4] The exemption allows designated TAIFEX members to market TAIFEX products in U.S. directly to U.S. investors and indicates that TAIFEX has met with the international standards. In October 2011, TAIFEX became a full member of the World Federation of Exchanges.[5]

In October 2012, the exchange signed a memorandum of understanding (MOU) with NYSE Euronext to connect their respective customer bases in Asia, Europe and the U.S. through NYSE Euronext’s order routing system and to explore additional ties.[6]

In February 2013, TAIFEX entered into a deal with Germany's Eurex to establish a link between the two exchanges, beginning with the ability to trade and clear derivatives based on the TAIEX equity index. [7] Then, on December 27, 2013, Eurex assumed a five percent stake in TAIFEX with the purchase of 12.92 million shares of the exchange from Yuanta Financial Holdings. The deal was valued at $42 million.[8] In May of 2014, Eurex and TAIFEX began listing daily futures based on futures and options on the Taiwanese blue-chip index TAIEX for the first time after Taiwanese trading hours at Eurex Exchange.[9]

Contract Volume[edit]

Year Total Annual Volume Percent Change
2021 392,202,371 14.9%
2020 341,393,346 30.9%
2019 260,765,482 (-) 15.4%
2018 308,083,576 15.9%
2017 265,705,669 9.9%
2016 241,678,556 (-) 8.6%
2015 264,495,660 30.7%
2014 202,227,653 32%
2013 153,225,238 (-) 2.2%
2012 156,731,912 (-) 14.4%
2011 182,995,171 30.9%
2010 139,792,891 3.5%
2009 135,125,695 (-) 1.2%

Products[edit]

TAIFEX plans to launch two RMB FX futures contracts, the USD/CNT FX futures (RTF) and the USD/CNH FX futures (RHF) on July 20, 2015. RTF and RHF will have contract sizes of USD 20,000 and USD 100,000 respectively. Trading hours for both contracts will be from 8:45am to 4:15pm to cover the trading hours of the Taiwanese interbank spot FX market.

ESG at TAIFEX[edit]

Information about TAIFEX's corporate commitment to ESG can be found on its website here.

Key People[edit]

References[edit]