The Taiwan Futures Exchange (TAIFEX) will introduce new FX futures products from next month to complement the currency derivatives offering and provide investors with more hedging tools, a senior exchange official told Reuters.
TAIFEX unveiled Monday the two new currency futures contracts will be launched on November 7, 2016 and include the euro against the U.S. dollar (EUR/USD) and the U.S. dollar against the yen (USD/JPY).
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The two new futures contracts are a follow-up to forex products launched by the TAIFEX in recent months including two yuan-denominated futures contracts (USD/CNT and USD/CNH) that were introduced by the exchange to the local market last year. The move was aimed at expanding Taiwan’s futures market as the country has signaled its ambition to become an offshore yuan trading canter.
Established in 1997 as the sole futures exchange in Taiwan, TAIFEX offers trading in futures and options across several asset classes including equities, indices, FX, interest rates and commodities.
The market makers for the new offering include Sinopac Financial Holdings Co, Yuanta Financial Holdings Co, KGI Securities and Capital Futures Corp.
The island’s futures exchange is planning the EUR/USD and USD/JPY instruments to be with contract sizes of EUR 20,000 and USD 20,000 respectively.