TAIFEX and Eurex to discuss cooperation in futures market
August 28, 2014, 12:26 am TWN
TAIPEI -- The Taiwan Futures Exchange (TAIFEX) and the Eurex Exchange, a derivative exchange in Germany, are scheduled to discuss cooperation in the futures market in Taipei yesterday.
The two exchanges also aim to focus on the role Taiwan can play as a Chinese yuan trading hub, the TAIFEX said. The discussions will take place in a seminar organized by FIA Asia — a Singapore-based futures association — and sponsored by the TAIFEX and the Eurex.
In mid-May, the TAIFEX launched the Eurex/TAIFEX Link platform in the German exchange. The TAIFEX puts futures and options in daily expiring contracts up for trading.
The underlying index of futures and options is the Taiwan Stock Exchange Capitalization Weighted Stock Index.
The TAIFEX said that as the futures products provided by the TAIFEX on the Eurex/TAIFEX Link platform have received a warm welcome, the two sides are planning to launch new products.
The move to introduce Taiwan's derivatives products to Europe has boosted the country's visibility in the global financial market, the TAIFEX said.
The local futures exchange said that both partners are expected to launch new derivatives products through the Eurex/TAIFEX Link in October, such as exchange-traded fund (ETF) futures and futures, the underlying index of which is the FTSE TWSE Taiwan 50 Index. The Taiwan 50 index is comprised of the country's 50 largest-cap stocks.
The TAIFEX said the two exchanges are also planning to unveil yuan-denominated derivatives next year to ride the wave of rising interest in the Chinese currency.
The local futures exchange said that Taiwan is sitting on large yuan-denominated funds and has a legitimate cause to transform itself into an offshore yuan trading hub. The seminar will focus on the current yuan trading in Taiwan and possible challenges the country will face while pushing to become a yuan trading hub.
According to the local central bank, yuan-denominated deposits taken by Taiwanese banks totaled 293.03 billion yuan (US$47.72 billion) as of the end of July, up 2.88 billion yuan from a month earlier.