Mon, Dec 08, 2014 - Page 13 News List

TAIFEX, Eurex heads say more cooperation needed

Staff writer, with CNA

The Taiwan Futures Exchange (TAIFEX, 期交所) on Saturday said it has reached a consensus with the Eurex Exchange, a derivative exchange in Germany, to expand bilateral cooperation in the future.

TAIFEX said that chairman Liu Lien-yu (劉連煜) met with Eurex executive director Michael Peters in an international futures market conference held in Shenzhen, China, on Thursday and Friday and expressed their intent to increase cooperation.

TAIFEX is planning to list more products on the Eurex, including Chinese yuan exchange rate futures contracts and exchange traded funds (ETF) futures contracts.

The Taiwanese exchange launched ETF futures contracts in Taiwan in early October, and is scheduled to unveil yuan exchange rate futures contracts on the local market next year.

The exchange said as long as turnover of the new contracts reaches a certain level it would list them on the Eurex as part of its efforts to boost global visibility for Taiwan’s futures products.

The contracts are expected to provide investors at the Eurex with more opportunities to hedge their trading risks.

In May, TAIFEX launched the Eurex/TAIFEX Link platform with the Eurex, putting futures and options in daily expiring contracts up for trade on the European market.

The underlying index of the products has been the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX).

During his stay in Shenzhen, Liu also met with chairmen and ranking executives from the four major Chinese futures exchanges — the Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange and the China Financial Futures Exchange — to discuss the possibility of exchanging market information and other cooperation.

TAIFEX said that Liu provided representatives from the four Chinese exchanges with Taiwan’s experiences in developing its futures market in a bid to push for cross-strait cooperation to strengthen the operations of futures trading on both sides.

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