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Taiwan Futures Exchange trading volume ended 2021 with another record high

TAIFEX executed 392 million contracts last year, beat 2020's trading volume from retail and foreign institutional investors

TAIFEX Chairman Wu Tzu-hsin.

TAIFEX Chairman Wu Tzu-hsin. (Taiwan News photo)

TAIPEI (Taiwan News) — The Taiwan Futures Exchange (TAIFEX) once again set a new annual trading volume record in 2021 amid the persistent headwinds of COVID-19, with an increase of 14.9%.

The exchange executed 392,202,371 contracts, marking its second straight positive year.

TAIFEX Chairman Wu Tzu-hsin (吳自心) on Tuesday (Jan. 11) attributed the strong turnover to capital market hype and larger foreign institutional investors, which accounted for 31.46% of traded volume last year, up from the 26.03% recorded in 2020. Greater diversity in futures product offerings and access to overnight trading also gave a boost as investors sought to hedge risks amid global market turbulence last year, the official added.

Single stock futures saw the most growth across all asset classes, with a total of 74,994,818 contracts traded and an average daily turnover of 307,356 contracts, an increase of 190.26% compared to 2020, per TAIFEX data. Equity futures on Evergreen Marine, United Microelectronics, and Innolux were the top three performers, highlighting strong demand for hedging exposures in these internationalized Taiwanese companies.

In addition to equity futures, market participants continued to show strong interest in trading the exchange's equity index contracts. Mini-TAIEX futures, TAIEX options — which are ranked as the world's seventh most-traded equity index option — and TAIEX futures were among the top performers last year.

Looking at 2022, Wu said the exchange will continue to add mini-sized contracts to cater to surging retail participation, to consider offering overnight session-suited new products, to refine its measures, and to apply more AI technologies to upgrade its service to the market.

Updated : 2022-01-21 00:13 GMT+08:00