The Eurex/TAIFEX Link saw a successful launch on 15 May. More than 2,100 contracts were traded and cleared in the first days of trading. The new link allows Eurex members to trade and clear TAIEX futures and options as daily expiring futures on the Eurex Exchange.
Strong support from Eurex and TAIFEX members as well as major vendors was key to the promising volumes seen in the first trading days. Three market makers are currently quoting the new daily futures on Eurex, providing ample order book liquidity. In total, seven trading participants have already been connected – from Taiwan, other Asian countries and Europe. The launch was also supported by several leading software vendors, including CQG, Ffastfill, Fidessa, Ion Trading, Orc Software, Patsystems, RTS, Sol-3, SunGard and Trading Technologies.
Many proprietary trading firms and local brokers from Taiwan and the wider Asian region can access Eurex products via several clearing members based in Asia and Europe, among them the Singapore-based United Overseas Bank Ltd (UOB), one of the largest financial institutions in Asia. UOB became the first Eurex Clearing member in Asia on 15 May 2014.
“We are excited about this cooperation as it offers new trading and hedging opportunities for us and are looking forward to further cooperation steps between these two exchanges,” said Ted Ho, Chairman of Yuanta Futures, one of Taiwan’s largest brokers.
“Barak Capital congratulates Eurex and TAIFEX on the launch of the link; we are happy to participate as a market maker and a partner. This link is a great opportunity for our clients and ourselves to gain access to the Taiwanese and other Asian markets,” said Eyal Bakshi, CEO Barak Capital Group.
“We are very pleased with the initial volume development. The strong interest and commitment by our market participants in this link are very encouraging,” said Roland Schwinn, Executive Director, Head of Asia Business Development and Middle East, Eurex.
The Eurex/TAIFEX Link enables Eurex’s international member base to access the TAIEX index derivatives market during European and US core trading hours. At the end of each trading day at Eurex, open interest will be transferred to the TAIFEX clearing house. Derivatives on the TAIEX index are among the most heavily traded Asian equity index contracts.
