One of the new measures will facilitate active participation by foreign investors in the TAIFEX market by liberalizing the restriction on trading for hedging purpose. Prior to March 27, foreign investors could only participate in Taiwan’s futures and options market for hedging purpose. This means that foreign investors participating in the TAIFEX market were required to hold a cash position in the underlying securities in Taiwan’s domestic market. This restriction will be abolished and TAIFEX will allow trading for non-hedging purpose by foreign investors. This will further stimulate the growth of foreign participation.
Another measure will facilitate efficient cross-border trading and investing. TAIFEX will introduce omnibus accounts in conjunction with the new products launch. Through omnibus accounts, a foreign FCM may conduct business on behalf of multiple clients through a single account with a TAIFEX’s FCM without having to disclose the identity of the clients to that TAIFEX’s FCM.
The Gold Futures is the first commodity product of TAIFEX. This has expanded Taiwan’s futures market from the equity and interest rate territory to the commodity and foreign currency-denominated contracts .
The three new products and two new measures will keep Taiwan in line with the global trend; bring more international investors to participate in TAIFEX, thereby increase the competitiveness and internationalization of the Taiwan futures market.
