TAIFEX, the Taiwan Futures Exchange, and Eurex Exchange, the international derivatives marketplace and part of Deutsche Börse Group, plan to launch the Eurex/TAIFEX Link on 15 May 2014.
With this link, Eurex Exchange will list TAIEX futures and options as daily expiring futures on Eurex Exchange. Derivatives on the TAIEX index are one of the most heavily traded Asian equity index contracts.
The cooperation has also been approved by Taiwan’s regulator Financial Supervisory Commission.
Dr. Fan, chairman of TAIFEX, says: “We are excited about our tie-up with Eurex and the launch of the Eurex/TAIFEX Link, which enables global investors to trade TAIEX futures and options after Taiwanese market hours. The ability to transfer open positions to TAIFEX will also enhance the efficiency and increase the liquidity and depth of Taiwan's derivatives market. This cooperation is a win-win for our two market places.”
Andreas Preuss (pictured), chief executive of Eurex, says: “With this link, we further broaden our presence in Asia and complement our global product suite. Our members will benefit from direct access to one of the most successful index derivatives contracts in Asia, while Taiwanese market participants will be able to trade Taiwan’s most liquid index derivatives contracts during Taiwanese after hours. This will also attract new customers for TAIEX products outside of Taiwan.”
The link will further increase the liquidity and efficiency of the Taiwanese derivatives market. In 2013, average daily volume (ADV) of TAIEX was around 95,000 futures contracts and 455,000 options contracts. The options are the fourth most heavily traded index derivatives contract in Asia-Pacific and are ranked number six worldwide in the first ten months of 2013.