Taiwan Futures Exchange (TAIFEX) signed a letter of intent with Germany’s Eurex Exchange Feb. 6 in Taipei City, clearing the way for enhanced product cooperation between the two trading floors.
The agreement, inked by TAIFEX Chairman Tony C. Fan and Eurex CEO Andreas Preuss, will see TAIFEX options and TAIFEX futures listed as daily expiring futures on Eurex in the fourth quarter. Market analysts tip the deal to greatly increase the liquidity and efficiency of Taiwan’s derivatives market.
“The partnership with Eurex is part of our strategy to sustain TAIFEX’s competitiveness in the fast-changing global derivatives market,” Fan said.
“As the deal will enable investors to trade TAIFEX futures and options while the local market is closed, our members can expand their business by providing customers with diversified products and services.”
In response, Preuss said the collaboration is a key component of Eurex’s strategy to broaden its global product suite. “Our members will benefit from direct access to one of the most successful derivatives contracts in Asia.”
The Eurex CEO also expects the deal to heighten demand for TAIFEX products outside of Taiwan while increasing interest in his exchange’s products throughout the Asia-Pacific region.
According to the ROC Financial Supervisory Commission’s Securities and Futures Bureau, the tie-up is the first of significance with a global market operator.
“We welcome such a positive development,” the FSC said. (JSM)
Write to Meg Chang at sfchang@mofa.gov.tw