The trading volume at Taiwan Futures Exchange (TAIFEX) ended 2014 at a record high of 202,411,093 contracts, passing the 200 million contracts benchmark for the first time.
Comparing to 2013, total trading volume and average daily trading volume (ADTV: 816,174 contracts) in 2014 posted growths of 32.1% and 31.04%, respectively. In terms of product types, total trading volume of futures in 2014 increased 15.37% from 2013, while for options it was an increase of 38.71%. Among the four major products – TAIEX Options (TXO), TAIEX Futures (TX), Mini-TAIEX Futures (MTX) and Single Stock Futures, Single Stock Futures showed the greatest growth (total trading volume: 9,508,470 contracts and ADTV: 38,341 contracts) of 74% from 2013, while TXO marked the second (total trading volume: 15,162,546 contracts and ADTV: 611,373 contracts), with a growth of 38.71%.
Since July 2014, with an overall upward direction of Taiwan’s cash market, trading and hedging has gained momentum in the futures and options market, and resulted in a faster-growing second half of the year and an all-time high total trading volume. In addition, the following incentive programs and mechanism, as well as new products, also contributed to TAIFEX’s volume growth:
• Incentive programs designated for Stock Index Futures, Single Stock Futures, and TXO
• Multiple underlying assets were added to the Single Stock Futures family, including securities of GreTai Market (introduced May 2, 2014) and three ETFs (Yuanta/P-shares Taiwan Top 50 ETF, WISE Yuanta/P-shares CSI 300 ETF, and Fubon SSE180 ETF; all introduced 6 October, 2014)
• With more developed negotiated block trade (introduced in December 2013), market maker program was also adjusted in response to rapid market change
• Active hosting of roadshows overseas to enhance foreign investors participation in Taiwan futures and options market
• The open positions of Eurex/TAIFEX Link products (Daily Futures on TX and Daily Futures on TXO launched at Eurex on May 15, 2014) transferred from Eurex to TAIFEX also contributed to the growth.
