The Taiwan Futures Exchange (TAIFEX) yesterday said that it will launch futures contracts on the Eurex Exchange, a derivatives exchange in Germany, on May 15, marking the first time that the local futures exchange will sell products overseas.
The exchange will list futures and options from the TAIEX in daily expiring contracts. The offering is part of the TAIFEX’s efforts to boost its international visibility while providing the Eurex with a springboard to enter the “greater China” market, the exchange said.
Putting Taiwanese futures on the Eurex is expected to attract more foreign institutional investors to trade in local futures, while Taiwan is eager to increase futures market liquidity.
The TAIFEX said the launch through the Eurex/TAIFEX Link platform will be beneficial for both of the exchanges, as well as investors.
The launch means that Taiwanese investors will be able to trade TAIEX futures and options after the local market closes.
Last year, an average of 95,000 TAIEX futures contracts were traded daily.
Meanwhile, the average daily turnover of TAIEX options totaled about 455,000 contracts.
TAIEX options were the fourth-most heavily traded index derivatives in the Asia-Pacific region and sixth worldwide in the first 10 months of last year.