Eurex inks deal with Taiwan Futures Exchange
The Taiwan Futures Exchange is to list futures and options on German derivatives exchange Eurex, following an agreement between the two bourses to make it easier for international investors to access each other’s markets round the clock.
The new listings will be TAIEX futures and options listed as daily expiring futures on Eurex exchange in Q4 2013. The derivatives are based on the TAIEX Index, which is a capitalisation-weighted index of all listed shares on the Taiwan Stock Exchange. In January 2013, average daily volume ADV in TAIEX options and futures was 500,000 and 100,000 contracts respectively.
“This cooperation will help our members benefit from direct access to one of the most successful derivatives contracts in Asia, while Taiwanese market participants will have the opportunity to trade Taiwan’s most liquid index derivatives contracts during Taiwanese after hours,” said Andreas Preuss, chief executive at Eurex. “The cooperation also aims to attract new Eurex customers for TAIEX products outside of Taiwan and increase the interest for Eurex products from Asia-Pacific.”
Part of the motivation behind the deal is to enable TAIEX options and futures to be traded after Taiwanese trading hours, meaning that international investors can access the market during European and US hours. At the end of each trading day at Eurex, the open interest will be transferred to the TAIFEX clearing house.
Developed world exchanges have been keen to develop alliances in recent years as a way of expanding their customer base and fending off competition from alternative platforms closer to home. At the same time, investors in the west have been keen to have access to Asian trading venues and products, as the Eurozone crisis and debt problems in the US have dampened investor sentiment closer to home.