Investors will have greater access to risk hedging tools when an after-hours futures trading platform launches next year, the Financial Supervisory Commission said on Thursday.
The Taiwan Futures Exchange (TAIFEX) and the nation’s 15 exclusive futures commission merchants plan to establish the platform, which is expected to be launched in May next year, the commission told a news conference.
“Expanding after-hours futures trading is part of the commission’s plan to address issues around shorter trading hours in the local securities market, and would provide investors with a hedging tool against overnight developments in the global markets,” commission Vice Chairman Cheng Cheng-mount (鄭貞茂) said.
“Turnover in the futures market would increase along with rising volatility in the stock market,” Cheng said.
The platform would enable after-hours trading of TAIFEX Futures that tracks the board between 3pm and 5am, beginning between 70 and 75 minutes after the end of regular trading between 8:45am and 1:45pm, the financial commission said.
The longer hours would help local investors react to changes during trading hours in the US and Europe, the commission said.
Initially, the more popular TAIFEX Futures and option contracts would be included in the platform, as well as futures and options contracts tracking US dollar to Chinese yuan exchange rates, Securities and Futures Bureau Chief Secretary Tsai Li-ling (蔡麗玲) said.
“Brokerages have been requesting expanded after-hours trading, in light of the availability of round-the-clock trading at futures exchanges in Japan, Singapore, and Hong Kong,” Tsai said.
The platform is expected to bring in additional earnings of NT$261 million (US$8.15 million) for the TAIFEX in its first year, Tsai said, adding that the exchange would need to employ an additional 210 people.
However, unlike the futures market, Tsai said that brokerages, dealers and investors are undecided about expanding trading hours for the Taiwan Stock Exchange as a way to boost persistently anemic turnover, and that it is harder to reach a consensus to implement change.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president