Alexa

Taiwan Futures Exchange to launch FTSE 100 futures contract

TAIFEX's FTSE 100 futures contract greenlit for trade among American investors

  624
Taiwan Futures Exchange. 

Taiwan Futures Exchange.  (CNA photo)

TAIPEI (Taiwan News) — The Taiwan Futures Exchange (TAIFEX) will start offering an NTD-denominated offshore futures contract to track the FTSE 100 Index, the UK's leading stock market indicator, on Nov. 23.

On Thursday (Nov. 19), just days before its official launch, the company announced that the U.S. Commodity Futures Trading Commission (CFTC) has given the green light for American investors to buy or sell the futures contract.

The contract will also be available during TAIFEX’s night session (3 p.m.-5 a.m. GMT+8), covering the trading hours of European and U.S. markets. This will enable both local and foreign investors to pursue transatlantic hedging and trading strategies while risk-managing the global exposure of their portfolios in a timely manner amid an era of uncertainty.

The UK FTSE 100 Index is a stock market index that comprises the top 100 capitalized British blue-chip companies listed on the London Stock Exchange, including HSBC, Standard Chartered, Glencore, BHP, AstraZeneca, and GlaxoSmithKline. The index is believed to be ideal for hedging risk. Each contract was designed to be small, with a multiplier of NT$50 (US$1.70) per index point, making it a cost-efficient, convenient, and flexible trading instrument for investors, the company said.

Since 2017, TAIFEX’s efforts to diversify its offshore offerings have strengthened its position as a hub for trading foreign equity index futures in Asia. Its success has also been driven by robust domestic liquidity and growing numbers of active international investors, who now account for around half of TAIFEX’s Dow Jones, S&P 500, and Nasdaq-100 index futures.