New futures

Japan Exchange Group to Launch TOPIX Futures in Taiwan

The deal could be the start of a long-term cooperation between the Japanese and Taiwanese bourses

The Japan Exchange Group (JPX) and the Taiwan Futures Exchange (TAIFEX) said in a joint statement that Tokyo Stock price Index (TOPIX) futures will start trading on TAIFEX next month. These will be the first non-Taiwanese equity index futures to be offered on TAIFEX, expanding JPX’s Asia reach.

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The TOPIX is JPX’s leading index, consisting of more than 1,800 stocks, calculated on the basis of all common stocks listed on the First Section of the Tokyo Stock Exchange. The new contracts will be denominated in new Taiwan dollars (TWD), facilitating Taiwanese investors’ access to Japanese equities without the element of foreign exchange risk, the statement said.

Besides, the new offering could attract the attention of international investors interested in opportunities provided by the Japanese and Taiwanese markets. In short, the move will help the two exchanges gain some competitive advantage in an environment of constantly intensifying competition.

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Both bourses look forward to further partnerships

Commenting on the news, JPX’s Group Chief Executive Officer (CEO) Akira Kiyota said: “Through this cooperation, JPX hopes Taiwan investors have more interests in Japanese market. We look forward to further deepening the ties between the Taiwanese and Japanese capital markets as partners in Asia.”

The Chairman of TAIFEX Len-Yu Liu said: “In response to the rapidly changing and globalised financial market environment, cooperation and partnerships are becoming ever more important. We are excited about our tie-up with JPX to launch TOPIX futures, which enables Taiwan investors to trade one of the heavily traded equity indices in Asia.” Liu added that he is looking forward to further joint initiatives between the two bourses.

For JPX, this is the second recent partnership with a Taiwanese bourse. In September, Finance Magnates reported the deal struck with the Taiwan Stock Exchange to start offering a number of ETFs on the Taiwan bourse, along with the launch of a number of Taiwanese index-based futures in Osaka.

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