Taiwan’s TAIFEX plans to launch RMB forex futures in 2015

The Taiwan Futures Exchange (TAIFEX) ended 2014 with a total of over 202 million contracts (an average trading volume of 816 thousand contracts per day), hitting an all time high since its open of business.

With more than 30% year-on-year growth in 2014, in a global context, TAIFEX’s Weekly Options on TAIEX was the most heavily traded weekly options on stock index, whereas TAIEX Options ranked 6th in options contract on stock index. Altogether, futures and options on stock indices at TAIFEX ranked 10th globally. This result was a combined accomplishment of regulator’s support and collaboration between the futures industry and TAIFEX.

Looking back to 2014, TAIFEX reports that it has made concerted efforts to drive the market growth, including the implementation of incentive programs, the broadening of underlying assets (such as ETFs) of Single Stock Futures, the disclosing of calculated opening prices and volumes during pre-trading session, the increasing of more block trades by negotiated trade systems, and the introducing of Eurex/TAIFEX Link products.

Stepping into 2015, TAIFEX plans to initiate the following strategic moves including the propsed launch of RMB forex futures. To meet the market needs of huge RMB cash pools and keep in line with the trend of RMB internationalization by China, TAIFEX intends to launch RMB forex futures during the first half of this year

The venue also plans the launch of derivatives on foreign stock indices. TAIFEX is currently in the planning of launching derivatives on major international stock indices at TAIFEX in 2015.

TAIFEX also announces the imminent listing of products at its foreign derivatives exchange. Building on the successful experience of Eurex/TAIFEX Link model, TAIFEX plans to list more products.

The venue will also extend the trading hours of China stocks-linked ETF Futures. To cover the trading hours of the home markets, TAIFEX is studying the feasibility of extending trading hours of the recently launched W.I.S.E. Yuanta/P-shares CSI 300 ETF Futures and Fubon SSE180 ETF Futures, from 1:45 PM (Taiwan Time) to 4:15 PM.

Looking into the future, TAIFEX will continue its growing strength and propel its market into a new era in 2015 by fulfilling its hedging and price discovery functions and achieving its mandate of invigorating futures trading while serving the real economy.

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