On February 18, 2026, the Taiwan Futures Exchange (TAIFEX) achieved two significant regulatory milestones from the Ontario Securities Commission (OSC). These achievements include an Exemption from Recognition as a Clearing Agency under the Ontario Securities Act, as well as exemptive relief granting substituted compliance for OTC derivatives’ customer clearing and protection. Both exemptions took effect immediately.
The exemptions enable Canadian financial institutions to participate in the central clearing of Taiwan’s derivatives markets, marking a pivotal step in deepening the financial partnership between Taiwan and Canada. Under the clearing agency exemption, Ontario-based financial institutions are now authorized to access
TAIFEX’s clearing services for both exchange-traded and over-the-counter (OTC) derivative markets. Furthermore, the exemptive relief for customer clearing and protection allows eligible institutions to engage in TAIFEX’s OTC clearing services as clients. Meanwhile, client participation in the exchange-traded derivatives will continue to be managed by Taiwan’s existing regulatory and clearing framework.
As Toronto, Ontario serves as Canada’s primary financial hub and home to major Canadian banks, this recognition provides a clear regulatory pathway for these institutions to engage with Taiwan’s exchange-traded and OTC derivatives markets. By becoming only the second clearing institution in Asia to attain such exemptions, TAIFEX is uniquely positioned to enhance foreign participation and deepen market liquidity and diversity. This achievement directly supports the Taiwan government’s strategic initiatives to establish the nation as premier “Asia Asset Management Center”.
This recognition reflects the robust cross-border supervisory cooperation between
Taiwan’s Financial Supervisory Commission (FSC) and the OSC under their Memorandum of Understanding (MoU). Since the launch of its OTC central clearing services in July 2022, TAIFEX has constantly secured top-tier international accreditations. These include its designation as a third-country central counterparty (TC-CCP) by the European Securities and Markets Authority
(ESMA), approval by Japan’s Financial Services Agency for TWD IRS clearing, and the Exempt Derivatives Clearing Organization status from the U.S. Commodity Futures Trading Commission (CFTC). The OSC’s exemptions further validate that Taiwan’s clearing framework, risk management protocols, and supervisory standards are fully aligned with international benchmarks.
Moving forward, TAIFEX remains committed to maintaining its rigorous regulatory framework as Qualified Central Counterparty (QCCP) recognitions across international jurisdictions. These efforts aim to strengthen foreign institutional participation, optimize capital efficiency for global players, and solidify Taiwan’s status as a leading asset management hub in the Asia-Pacific region.
