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Contest held to promote futures trading amid global market turmoil

Contest held to promote futures trading amid global market turmoil

In the midst of the worst global market sell-off since the financial crisis of 2008, some Taiwanese investors are seeking refuge in futures to offset the risk of adverse price movement. A Financial Times story recently identified 12 black swans that are awaiting to disturb global equity markets throughout 2016, including the oil price slump, shares sell-off by Middle East sovereign wealthfunds for cash, Chinese yuan devaluation, political uncertainty before U.S. presidential election, and so forth, sparking anxiety among global capital markets. Turbulence over the past year sent investors seeking a hedge or a safe haven of the future for their investment portfolios. Accordingly, Taiwan Futures Exchange saw an average daily trade volume exceeding the 1 million contracts benchmark in 2015, with an increase of nearly 44 percent on a yearly basis. The launch of four new products—TOPIX index futures, RMB futures, ETF futures and options—also contributed to the sharp increase in volumes. To promote the four new future products and boost transactions, Taiwan Futures Exchange (TAIFEX) has teamed up with 19 futures brokers to launch a trading competition and lucky draw. The competition requires registration online and opening a new account at the participating brokers to proceed transactions during the period from March 1 to the end of May. Larger transactions can increase winning odds for prizes, including SOGO Mall gift coupons, laptops, and iPhone 6S. TAIFEX Chairman Liu Lian-yu indicated that the competition is designed to help local investors familiarize themselves with the four new futures products and to boost trading volume accordingly. Liu is also hoping to see that the global ranking of the country’s trading volume can jump to 15th place from the existing 19th in a three-year time span.


Updated : 2021-08-02 15:31 GMT+08:00