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TAIFEX has introduced an innovative platform for trading flexible contracts. The platform offers flexible Mini-TAIEX futures and enhances trading flexibility. Traders can customize the expiration date within one year from the listing date to accommodate various strategic trading needs and enable precise management of their portfolios.

Flexible contracts can be used for trading and hedging in response to specific events. Futures commission merchants (FCMs) can apply to TAIFEX for listing flexible contracts with specified expiration dates on behalf of their clients or for themselves. These flexible contracts can be traded as early as the next business day, promptly meeting trading needs. Additionally, they can be traded in combination with other products to execute a broader range of strategic trades, significantly increasing trading opportunities and diversifying the trading portfolio. Moreover, flexible contracts are centrally traded and cleared, effectively reducing counterparty default risks. They exhibit the advantages of over-the-counter customization while capitalizing on the benefits of centralized market trading.

• Eligible Products /Trading Hours

  Mini-TAIEX Flexible Futures (MXFFX)：8:45 – 13:45 (8:45 – 13:30 on the Last Trading Day)

• Application channel

  The channel for the FCMs to apply for Flexible contracts is as follows: (1) Transmit the contract details to the TAIFEX’s trading system for application through a server connection; (2) Submit the application through the TAIFEX's website (icon.taifex.com.tw).

• Application time and process

  FCMs can apply either for themselves or on behalf of their clients for listing flexible contracts at TAIFEX during the designated application period (8:30 –15:30 on trading days). Once TAIFEX verifies that the application fulfill all requirements, the contract will be listed on the next business day for all eligible traders (not limited to applicants) to trade.

• Transmitted content

  The transmitted content of the application for MXFFX by the FCMs shall include information such as the FCM code, trading account number, contract details, application number, and identity type.
  (For relevant introduction and examples, please see QA (Trading Q4))

• Delisting Conditions of Flexible Contracts

  After the market closes each day, the TAIFEX will check the open interest of all outstanding positions for Flexible Contracts. If the OI for a flexible contract remains zero for 10 consecutive trading days, the listing of that contract will be terminated.

• Trading mechanism

  TAIFEX offers continuous matching and negotiated block trades for flexible contracts.

  • continuous matching period
    During the continuous matching period, there is no call-auction matching, no prior order entry before market opening, and no acceptance of calendar spread/combination orders. Additionally, neither market orders nor MWP (Market-With-Protection) orders are available; only limit orders are accepted.
  • Block trade
    The mechanism is the same as that of the current block trades, but combination orders are available only for flexible contracts. The minimum threshold for negotiated block trades is 50 lots.
• Dynamic price banding

  Mini-TAIEX Flexible Futures(MXFFX) are subject to dynamic price banding. (See more Introduction)

• System Application Quantity Limit

  To prevent malicious and excessive applications, the TAIFEX has a daily limit on the number of applications (50 contracts). Therefore, if an FCM applies for more than 50 contracts on a given day, the application will be rejected. If there is a genuine trading demand from clients and an increase in quota is needed, the FCM can contact the TAIFEX to apply for temporary quota increase during trading hours. However, the decision to increase the quota will be made based on the situation by the TAIFEX.

• Market closure due to force majeure

  If the expiration date of a flexible contract coincides with a market closure due to force majeure (e.g., a market closure caused by a typhoon), or if the expiration date, which was a working day at the time of application, is subsequently declared a holiday by the government, the expiration date will be extended to the next business day.