The Taiwan Futures Exchange (TAIFEX) entered into an index license agreement with CME Group, the world’s leading and most diverse derivatives marketplace, and S&P Dow Jones Indices LLC to list futures on the S&P 500® and Dow Jones Industrial Average® (DJIA) indices.
TAIFEX plans to launch Taiwan dollar (TWD)-denominated futures contracts for the S&P 500 and DJIA indices in the second quarter of 2017.
The launch of these new futures contracts coincides with the upcoming introduction of TAIFEX after-hours trading in May 2017, allowing both products to be traded throughout the entire U.S. trading session.
“Both contracts are designed to cater to the high level of demand for products linked to U.S.-listed stocks; while also expanding the number of investment options, hedging channels available in Taiwan and inter-market trading opportunities,” said Dr. Len- Yu Liu, TAIFEX Chairman. “The upcoming contracts are also the latest overseas market-linked products to debut on TAIFEX, following the introduction of TOPIX and Nifty 50 futures contracts in 2016.”
“Our focus continues to be providing our global customers with access to new products and markets to help them manage their risk,” said CME Group Chairman and Chief Executive Officer Terry Duffy. “This agreement with TAIFEX demonstrates the importance of global benchmarks like the S&P 500 and DJIA indices, which help investors better manage equity index exposure.”
“We are pleased to license the iconic S&P 500 and Dow Jones Industrial Average indices for the creation of future contracts in Taiwan,” said Alex Matturri, CEO of S&P Dow Jones Indices. “This agreement reflects the growing demand from local market participants for efficient and recognizable measures of the U.S. equity market to meet their evolving needs.”
The multipliers of DJIA futures and S&P 500 futures will be TWD20 and TWD200 per index, respectively.
Further information about the introduction of after-hours trading can be found on TAIFEX’s website.
