TAIPEI (Taiwan News) — Taiwan's futures exchange posted a record-breaking level of trading in 2020 thanks to a strong hedging demand from market participants, with up to 23 percent of new trading accounts owned by investors under 30 years old, the Taiwan Futures Exchange (TAIFEX) said Thursday (Jan. 14).
To seek growth while maintaining market stability, TAIFEX will offer free online courses and tools this year to improve financial literacy on futures and options trading as well as the risk perceptions of young investors so they can avoid gambling on big payoffs or highly speculative trades.
In 2018, the exchange rolled out a dynamic price banding mechanism that denies intra-day odd lot trading in order to protect investors in the event of fat-finger errors.
"Over 341 million contracts were traded on the exchange during pandemic-hit 2020, as the demand for risk hedging soared in the capital market due to the coronavirus outbreak and turbulence in the global political economy," said TAIFEX Chairman Wu Tzu-hsin (吳自心).
"We are dedicated to offering an efficient, competitive, secure, and fair transaction platform for all investors and are doing our part to promote financial literacy among young investors who are excessively bullish," Wu explained. He went on to say that a number of educational resources and events focused on investment risk management are underway, some of which will "incorporate diversified and creative learning methods preferred by the millennial generation, such as online animated video series and relevant classes opened in collaboration with colleges."
On Tuesday (Jan. 12), Financial Supervisory Commission (FSC) Chairman Huang Tien-mu (黃天牧) issued urged young investors to become more financially literate, as the share of investors under 30 hoping to tap into the local stock market boom spiked to 1.23 million over the past year. Huang encouraged them to take advantage of the free classes offered by government-funded financial institutions.