The Taiwan Futures Exchange is planning to launch single stock
futures in the fourth quarter of this year.
Speaking at the New Era for Investment in Taiwan Forum 2009
event in London in September, Peter Chiu, senior executive
vice-president at the exchange, said Taifex was planning to
offer cash-settled futures on the most liquid stocks listed on
Taiwan Stock Exchange.
Taifex already lists options on 30 stocks, as well as eight
futures and six options on a variety of share indices.
The underlyings of the new futures will mirror those of the
options: stocks such as China Steel Corp, China Airlines, Fubon
Financial Holding and Sinopac Financial Holdings.
Chiu said the new futures would enhance
investors’ hedging strategies. Taifex is also
considering launching futures and options on other major
indices, including emerging market indices, and on
exchange-traded funds on the Taiwan Stock Exchange.
The Taipei-based exchange is also evaluating whether to
introduce energy products and derivatives on the stockmarket
In the past few years Taifex, Taiwan’s only
futures exchange, has undergone important changes aimed at
increasing market efficiency.
The exchange lowered trading costs, allowed eligible
securities to be used as margin deposit and introduced a Span
margin system. It is also considering allowing block
"We’re making our futures market more efficient
and with a lower cost of trading," Chiu said.
So far, Taifex’s most liquid contracts are
futures and options on the Taiex index of all the shares listed
on the Taiwan Stock Exchange. Some 92.8m Taiex options were
traded last year and 19.8m Taiex futures.
Taifex has been trying to increase the number of
institutional market participants using the market, and to
strengthen cooperation with Taiwan’s securities
Joseph Tsai, who took over as chairman of Taifex in July,
vowed to lead Taifex to become "an international level
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |