SIMEX MSCI Taiwan Contracts - Last Trading Day Extended To 6 October 1999

The Taiwan Stock Exchange has announced that it would temporarily narrow the price limits in its stock and futures markets so that no stock's price can fall more than 3.5% in a single day. The upward price limit remains unchanged at 7%. This move is aimed at limiting panic-selling when the Taiwan stock market reopens today for the first time since the closure of the market as a result of the earthquake which hit Taiwan on Tuesday 21 September 1999. To provide for any unexpected impact of such price constraints on the trading and settling of the expiring September 1999 contracts of the SIMEX MSCI Taiwan Stock Index futures and options market, SIMEX will extend the Last Trading Day of the expiring September 1999 futures and options contracts from this Wednesday, 29 September 1999 to next Wednesday, 6 October 1999. Besides giving the market more time to adjust, this would also ensure there are no price distortions and that orderly and fair market conditions prevail at all times. In line with this, the September 2000 contract month of the MSCI Taiwan futures and options will only be listed after 6 October 1999. Meanwhile, the existing daily price limits for the SIMEX MSCI Taiwan Index futures and options will continue to apply in accordance with the Rules of the Exchange. The market for these contracts will also remain open unless otherwise decided and announced by the Exchange in the event of any closure of the underlying stock market in Taiwan.