“We are delighted to have licensed the MSCI Taiwan IndexSM to TAIFEX as the basis for its new futures and options contracts,” said Mr. Henry Fernandez, President and CEO of MSCI Barra. “MSCI Taiwan is a widely monitored index and the TAIFEX futures and options contracts will provide important tools for investors managing their MSCI benchmarked portfolios.”
Mr. Der-Shan Wang, the Chairman of TAIFEX, said “TAIFEX has endeavored to develop new international financial products. MSCI Taiwan IndexSM has long been an international index benchmark for global institutional investors and is also widely accepted by local investors. In addition to opening for the trading of non-hedging purpose, and the introduction of omnibus accounts for foreign participants on the same day, the launch of MSCI Taiwan IndexSM products fulfills TAIFEX's strategic goal in line with global trend.”
TAIFEX set another record high in 2005, with total annual trading volume reaching 92,659,768 contracts. This represented a growth rate of 56.66% as compared with 59,146,356 contracts in 2004. According to the latest statistics from FIA, TAIFEX was ranked 18th in terms of market turnover. The TAIEX Options contract was also ranked the 3rd largest index options contracts in the world in terms of trading volume. To facilitate foreign participation in arbitraging and hedging between the Taiwan stock and futures markets, MSCI Taiwan IndexSM futures and options contract are denominated in US dollar. The launch of US dollar-denominated MSCI products will begin a new era in Taiwan’s futures market. Together with the introduction of omnibus accounts and permission of non-hedging purpose trading, TAIFEX aims to raise the percentage of foreign participation, thereby increasing its global reach.
To facilitate American-based investors to participate directly in Taiwan’s futures market, TAIFEX has applied to the Commodity Futures Trading Commission (CFTC) for Part 30 exemption. In addition, TAIFEX has obtained No-Action letters on four products: TAIEX Futures (TX), Mini-TAIEX Futures (MTX), Electronic Sector Index Futures (TE), and Finance Sector Index Futures (TF). TAIFEX will apply for the No-Action letter for the MSCI Taiwan IndexSM Futures once it has been launched.
