Taiwan Futures Exchange
Encyclopedia
The Taiwan Futures Exchange (TAIFEX) was established in 1998. It offers futures
and options on major Taiwan
stock indices, government bond futures, equity options and 30-day CP interest rate futures.
The development of Taiwan's futures market may be divided into two stages. In the first stage, foreign futures were allowed for trading; the second stage marked the creation of a domestic futures market. The Foreign Futures Trading Law was enacted in June 1992 to provide a legal basis for investors to trade at foreign futures markets. The Futures Trading Law was enacted in March 1997, which replaced the Foreign Futures Trading Law and established the legal guidelines for the domestic futures market. This paved the way for the establishment of Taiwan Futures Exchange (TAIFEX) in September of the same year.
Along the years the TAIFEX have sought to diversify its products seeking to offer more hedging vehicles for investors.
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
and options on major Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
stock indices, government bond futures, equity options and 30-day CP interest rate futures.
The development of Taiwan's futures market may be divided into two stages. In the first stage, foreign futures were allowed for trading; the second stage marked the creation of a domestic futures market. The Foreign Futures Trading Law was enacted in June 1992 to provide a legal basis for investors to trade at foreign futures markets. The Futures Trading Law was enacted in March 1997, which replaced the Foreign Futures Trading Law and established the legal guidelines for the domestic futures market. This paved the way for the establishment of Taiwan Futures Exchange (TAIFEX) in September of the same year.
Along the years the TAIFEX have sought to diversify its products seeking to offer more hedging vehicles for investors.
Products introduction timeline
- 21 Jul 1998: The Taiwan Stock Exchange Capitalization Weighted Stock IndexTaiwan Capitalization Weighted Stock IndexTaiwan Capitalization Weighted Stock Index is a stock market index for companies traded on the Taiwan Stock Exchange . TAIEX covers all of the listed stocks excluding preferred stocks, full-delivery stocks and newly listed stocks, which are listed for less than one calendar month...
(TAIEX) futures. - 21 Jul 1999: The Taiwan Stock Exchange Electronic Sector Index futures and the Taiwan Stock Exchange Finance Sector Index futures.
- 9 Apr 2001: The Mini-TAIEX futures.
- 24 Dec 2001: The TAIEX options.
- 20 Jan 2003: Equity options with physical settlement.
- 30 Jun 2003: The Taiwan 50 Index Futures.
- 2 Jan 2004: The Government Bond Futures.
- 31 May 2004: The 30-Day Commercial Paper Interest Rate Futures.
- 28 Mar 2005: The Electronic Sector Index Options and Finance Sector Index Options.
- 27 Mar 2006: The MSCI Taiwan Index Futures, MSCI Taiwan Index Options and Gold Futures (all US dollar-denominated).
External links
- TAIFEX official site (in English)