The Taiwan Futures Exchange (TAIFEX) is set to launch Micro TAIEX Futures (TMF) on July 29, 2024. This strategic addition to TAIFEX’s product lineup aims to offer traders greater flexibility and accessibility in capital management, addressing the rising index levels and evolving demands of the Taiwan market.
Since the beginning of 2023, the TAIEX Index has surged by over 9,000 points, recently surpassing the 24,000-point milestone for the first time. This impressive growth has significantly increased the contract size of Mini-TAIEX Futures (MTX), now exceeding NTD 1.2 million per contract, up from approximately NTD 270,000 when first introduced in April 2001. In response to the heightened trading thresholds associated with MTX and TAIEX Futures (TX), the introduction of TMF offers a more accessible and versatile trading instrument.
TMF features a multiplier of NTD 10 per index point, resulting in a contract size of NTD 240,000 at an index level of 24,000 points. This new contract size is one-fifth that of MTX and one-twentieth that of TX, providing investors with a highly adaptable and precise trading tool. The reduced contract size facilitates finer position adjustments and more efficient execution of hedging or trading strategies, allowing investors to respond swiftly to market changes and enabling better capital allocation across a broader spectrum of assets.
Complementing the existing TX and MTX, TMF seamlessly integrates into TAIFEX’s current portfolios. Traders can also exploit arbitrage opportunities between these contracts or with other products such as the Mini Electronics Sector Futures (ZEF), Taiwan Semiconductor 30 Futures (SOF), and single stock futures on TSMC, MediaTek and Hon Hai Precision.
The launch of TMF marks another significant milestone for TAIFEX, underscoring its commitment to continually introducing new products that enhance trading flexibility and diversification, expand market participation, and meet the evolving needs of investors. For more information, please visit here.
