The Taiwan Futures Exchange (TAIFEX) has been granted Part 30 Exemption by the Commodity Futures Trading Commission (CFTC) on March 28, 2007. The exemption opens the gate for designated TAIFEX members to market TAIFEX products directly to the U.S. investors.
The exemption relieves designated TAIFEX members from the application of certain of CFTC’s foreign futures and options regulations based upon substituted compliance with certain comparable regulatory and self-regulatory requirements of Taiwan regulatory authority consistent with conditions specified by CFTC.
The exemption will become effective as to any TAIFEX member FCM after filing of certain consents with the National Futures Association (NFA).
So far, five TAIFEX products have been granted no-action letters by CFTC and are permitted to offer and sell in the U.S. The five products are TAIEX Futures, Mini-TAIEX Futures, Electronic Sector Index Futures, Finance Sector Index Futures and TAIFEX MSCI Taiwan IndexSM Futures.
TAIFEX is keen to attract foreign participation in its market. Recent liberalization measures include the permissioning of trading for non-hedging purposes by foreign investors, the introduction of omnibus accounts, the acceptance of US dollar as margin deposit, the launch of US dollar-denominated products and the reduction of transaction costs.
In conjunction with the liberalization measures, the Part 30 Exemption presents a great potential for U.S. investors to participate in the Taiwan futures market. TAIFEX will actively take initiatives to attract U.S. investors and expects a continuous growth from U.S. in the future.
