TAIPEI (Taiwan News) — The Taiwan Futures Exchange (TAIFEX) on Monday (Oct. 12) said it will have another record-breaking year in 2020.
In 2018, a record high of 380 million futures contracts was traded on the exchange. In 2020, demand for risk hedging has soared in the volatile capital market of the pandemic era, with the average daily turnover in the futures trading reaching 1.45 million in late August, up 16 percent from two years ago. TAIFEX said 2018's record could be broken this November.
TAIFEX Chairman Wu Tzu-hsin (吳自心) explained why at a forum held for the futures trading community on Monday. The newly appointed chief attributed the breakthrough to a wide variety of new financial instruments launched over the years, trading hours being extended to 19 a day, and of course, strong demand for futures trading among institutional and retail investors as a hedging tool to beat the turbulence in global stock and currency markets.
"TAIFEX has gained momentum year after year due to its ever-expanding product lines, including co-branded indices for the S&P, the Dow Jones Industrial Average, and Nasdaq," said Wu. The growth is expected in Q4 with a sense of uncertainty that goes beyond concerns over who will win, he pointed out.
The company is set to launch the Financial Times Stock Exchange (FTSE) 100 Index Futures following UK-listed blue-chip companies trading on the London Stock Exchange (LSE) by the end of the year for investors to choose from.