Since its establishment in 1998, Taiwan Futures Exchange (TAIFEX) has impressed the world with its robust trading volume, increased participation of institutions, efficient electronic trading environment, and intensive involvement in international activities. In 2003, the TAIFEX’s total trading volume and average daily trading volume achieved an all-time record of 31,874,934 and 128,067 contracts respectively, both representing a growth of around 300% as compared to the previous year. As the end of September 2004, the accumulated turnover has reached a new high record of 43,576,381 contracts and average daily trading volume stood at 236,727 contracts, far surpassing that of 2003. According to the Futures Industry Association (FIA), the TAIFEX was the 26th among the world exchanges in 2003, up from 36th in 2002. By June of 2004, the TAIFEX has ranked 20th place with a 202.50% growth rate in comparing to the same period of 2003. In terms of index derivatives, the TAIFEX was ranked 7th, up from 17th in 2002, marking a growth rate of 299% according to the International Options Market Association (IOMA). Moreover, the TAIEX Options (TXO) marked the world’s 4th among listed stock index contracts for the first quarter of 2004 according to Futures and Options Week (FOW).
Following its continuing efforts on relaxing the access restrictions and receiving no action letter for TX and MTX this June from the CFTC, TAIFEX led by Chairman Dr. Foo-Hsiung Ho will join the Expo in Chicago from October 26-28 and set a road show targeting at overseas Chinese and US equity traders by introducing the prosperity of Taiwan futures market on October 23 and 27, 2004. In addition, the TAIFEX and the NYMEX will sign the memorandum of understanding on October 29, 2004 to explore the potential areas of cooperation that mutually benefit both exchanges. The NYMEX is the largest physical commodity exchange in the world, offering futures and options trading in energy and metals contracts and clearing services for off-exchange energy transactions. The TAIFEX, as one of the top-fast growing markets, is currently studying the feasibility of launching commodity futures aside from its current seven index derivatives and two interest rate futures contracts. The cooperation between the two exchanges is expected to bring close relationships in exchanging and sharing related information and experience.
