To generate liquidity in the electronic MSCI Taiwan Index futures market, SGX has secured the commitment of institutional liquidity providers to establish an efficient market that offers competitive two-way prices for the electronic SGX MSCI Taiwan Index futures contracts. All market participants will enjoy clearing fee discounts as added incentive for trading SGX MSCI Taiwan Index futures contract electronically. Furthermore, a new margining scheme would also help reduce the margin funding cost for traders who trade multiple SGX equity derivative contracts.
Accordingly, SGX plans to consolidate the trading of the SGX MSCI Taiwan Index futures contract on the electronic platform and close the open outcry trading pit after the close of business on 30 June 2005. The SGX MSCI Taiwan Index options pit will continue to be open for trading until further notice.
To facilitate a smooth transition to electronic trading, SGX has embarked on several initiatives for SGX Locals since 2004 to prepare them for electronic trading. Some of the initiatives include the provision of trading booths and handheld trading devices with SGX QUEST access for Locals, free electronic trading strategy courses, and simulated trading from the Electronic Learning Centre.
Mr Ang Swee Tian, President of SGX, said, "The success of E-Nikkei is testament to our customers' preference for seamless trading access and the superior efficiency of electronic trading. Hence, we are now introducing a series of initiatives to promote electronic trading of MSCI Taiwan futures as part of our suite of Asian equity derivatives products on SGX Quest. We will continue to work with our market participants who have supported our endeavours to develop our electronic market."
