The Taiwan futures market developed in two stages. The first stage permitted trading in foreign futures. The second stage involved the creation of a domestic futures market. The Foreign Futures Trading Law was enacted in June 1992 to provide the legal basis for investors to trade in foreign futures markets. Meanwhile, the competent authority began working in concert with the relevant agencies and the nascent domestic futures industry to build a domestic futures market capable of meeting a key policy objective: internationalizing our financial markets. When enacted in March 1997, the Futures Trading Act replaced the Foreign Futures Trading Act and established the legal framework for the domestic futures market. This paved the way for the establishment of the Taiwan Futures Exchange (TAIFEX) in September of the same year. With all the legal bases for futures trading in place, TAIFEX opened for business and launched its first product, Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) Futures, on July 21, 1998. On TAIFEX’s first anniversary, it introduced two additional products: Taiwan Stock Exchange Electronic Sector Index Futures and Taiwan Stock Exchange Finance Sector Index Futures. TAIFEX launched two more products, Mini-TAIEX Futures and TAIEX Options, on April 9, 2001, and December 24, 2001, respectively. The debut of TAIEX options diversifies our product lines, offering more hedging vehicles for investors. TAIFEX introduced the first non-index related products, – Equity Options on January 20, 2003.
In the area of commodity-based products, TAIFEX introduced US dollar-denominated Gold Futures on March 27, 2006. In consideration of market needs and the preferences and trading habits of domestic investors, TAIFEX launched New Taiwan Dollar (NTD)-denominated Gold Futures on January 28, 2008. To provide investors in the spot market for gold with more diverse trading and hedging instruments, TAIFEX launched NTD-denominated Gold Options on January 19, 2009. TAIFEX went on to launch Single Stock Futures on January 25, 2010, providing investors in the stock market with still better hedging instruments and reduced tracking error. In response to Taiwan's flourishing offshore RMB market, TAIFEX launched two USD/RMB FX Futures contracts on July 20, 2015, making standardized FX derivatives available to the market. These products allow investors to formulate more diverse trading strategies and give them greater flexibility in their utilization of funds.
On December 21, TAIFEX introduced TOPIX futures based on the leading stock index of JPX to Taiwan investors, which is the first time for TAIFEX to list a foreign equity index futures. The launch of TOPIX futures provides investors with more diversified trading strategies and marks an important step in the internationalization of Taiwan futures market. In 2016, TAIFEX launched EUR/USD FX Futures and USD/JPY FX Futures on November 7, 2016, to meet investors’ diverse trading needs and invigorate the market development.
On May 15 2017, TAIFEX launched after-hours trading session, extending trading hours to 19 hours. The launch of after-hours trading session coincides with DJIA Futures and S&P 500 Futures, which have further enhanced our sustainable development and competitiveness. British Pound GBP/USD FX Futures, AUD/USD FX Australian Dollar Futures, crude oil futures, and other offshore equity index futures. TAIFEX continued to provide investors with a comprehensive product line in 2018, TAIFEX launched GBP/USD FX Futures, AUD/USD FX Futures on January 22, 2018. To innovate and diversify our market’s products, TAIFEX launched Brent Crude Oil Futures on July 2, 2018, recording TAIFEX’ s footprint in the energy area. On October 1 2019, TAIFEX launched Nasdaq-100 Index Futures and TPEx 200 Index Futures. These new products provide a more diverse range of trading and hedging choices. To boost the growth of the Taiwan futures market, TAIFEX launched F4G TIP TW ESG Index Futures and TIP Taiwan Bio Futures on June 8, 2020.
On November 23 2020, TAIFEX launched FTSE® 100 Index Futures, which enables TAIFEX to further expand its product line into the European market. In 2021, TAIFEX launched Mini Electronics Sector Futures on June 28 and Mini Finance Sector Futures on December 6, presenting more trading alternatives for market participants to manage industry risks. On June 27 2022, TAIFEX launched Taiwan Semiconductor 30 Futures and Shipping and Transportation Sector Futures, responding to diverse demands for trading and hedging instruments. On December 18 2023, TAIFEX launched PHLX Semiconductor Sector Futures, becoming the sole exchange outside the U.S. to offer futures contracts based on this index. This expansion not only broadens TAIFEX's diverse product offerings in domestic and international semiconductor futures but also provides traders with valuable insights into technological advancements and trends. This equips them with the knowledge necessary to comprehend the important factors that will shape future competitive dynamics. On July 29 2024, TAIFEX introduced the Micro TAIEX Futures, with a contract multiplier of NTD 10, to offer traders a more adaptable trading tool. On December 9 2024, TAIFEX introduced the Taiwan Mid-Cap 100 Futures, which includes listed companies ranked 51st to 150th by market capitalization—expands the available product offerings and provides greater flexibility in asset and wealth management. This addition allows participants in both the futures and cash markets to more accurately track and respond to trends within the mid-cap sector.
TAIFEX facilitates price discovery and risk transfer in the centralized futures trading market and fair trading environment that the public interest demands. Moving forward, TAIFEX will continue to foster balanced development of the overall market by introducing new products, strengthening its trading and settlement systems, enhancing the efficiency of its IT systems, and educating participants. It will also continue its efforts to align itself with other international markets, promote international communication and cooperation, become more competitive, and raise its international profile to achieve its long-term goal of creating a world-class marketplace. TAIFEX is committed to growing and managing Taiwan's futures market in a sustainable fashion to create the brightest, soundest future possible.
