TWSE Extends First TAIEX Index Futures to Osaka Exchange

The futures contract represents the first foreign listing in Japan to track the TAIEX.

The Taiwan Stock Exchange (TWSE) and the JPX have expanded their existing partnership to include the listing of new TOPIX futures and exchange-traded-funds (ETFs) tracking the TOPIX and Nikkei 225 indices in Taiwan.

The listing launch is important as it constitutes an inaugural futures contract that tracks the TWSE’s Capitalization Weighted Stock Exchange Index (TAIEX) internationally. The instrument has debuted on the Osaka Exchange (OSE), a subsidiary of the Japan Exchange Group, Inc. (JPX), representing the latest bridge between the Japanese and Taiwanese exchanges.

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ETFs have been on the rose globally, with both Europe and the US seeing sustained levels of growth in its trading. Asia as well has proven to be an amicable realm for ETFs, with the latest ETFs tracking the TOPIX and Nikkei 225 being met with a healthy appetite by investors.

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Being the first futures contract to track the TAIEX that’s listed on a foreign stock exchange is noteworthy as it helps Japanese investors gain exposure to the Taiwanese markets. The TAIEX index is comprised of all listed common shares traded on the TWSE and is the benchmark index for the Taiwan securities market.

The cross-border introduction of the futures at the OSE looks to augment the global profile of the TAIEX index, whilst allowing Japanese investors to familiarize themselves about Taiwan’s securities and futures markets. The listings mandate is the latest agreement that dates back to a Memorandum of Understanding (MoU) in 2000 between Japanese and Taiwanese market operators.

Earlier this month, the TWSE revamped its leadership structure, adding Jun-ji Shih as its chairman as well as former TPEx Deputy Chairman Chi-hsien Lee as its president. The TWSE’s Chairman Jun-ji Shih joined the exchange after serving in several regulatory roles including a stint as the Commissioner of the Fair Trade Commission, Chairman of the Financial Supervisory Commission, and Minister without Portfolio of the Executive Yuan.

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