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Taiwan Province of China : CHINESE yuan-denominated futures in Europe to be launched by TAIFEX

September 1, 2014



The Taiwan Futures Exchange (TAIFEX) will introduced Chinese yuan-denominated futures products on the Eurex Exchange, a derivative exchange in Germany, to form closer business connections with its European counterpart.

TAIFEX introduced the Eurex/TAIFEX Link platform on the Eurex in May, putting futures and options in daily expiring contracts up for trading in the European market. The underlying index of the products has been the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX).

TAIFEX because of a warm welcome has agreed to offer more products, particularly since daily turnover of the TAIEX futures and options has continued to rise since launch.

TAIFEX is at present getting ready to introduce Chinese yuan exchange rate futures in the second half of the year, both in the Taiwan market and on the Eurex/TAIFEX Link platform.

As per to TAIFEX, Hong Kong has earlier launched yuan exchange rate futures, and Singapore is expected to unveil its own yuan exchange rate futures in the fourth quarter of this year.

The local futures exchange said that it will work with Eurex to sell yuan exchange rate futures in an attempt to enhance Taiwan's visibility in the global derivative market and will begin more yuan-denominated derivative products in the future.

TAIFEX said that the efforts to launch yuan-denominated futures will pave the path for Taiwan to transform itself into an offshore yuan trading hub in the future.

TAIFEX before the trading of the yuan exchange rate futures, said that it is planning to put two batches of futures products up for trading in the Eurex/TAIFEX Link platform in October.

One is the exchange-traded fund (ETF) futures for which the underlying index will be the FTSE TWSE Taiwan 50 Index. The Taiwan 50 Index is included of Taiwan's top 50 leading cap stocks.

According to TAIFEX the other one is the ETF futures, for which the underlying index will be the Shanghai Stock Exchange Stock Exchange Composite Index.


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Source: TendersInfo (India)


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