Taiwan Futures Exchange (TAIFAX) hits all-time trading record in 2020

The need for OTC brokerages to go down the multi-asset route is clearly displayed by results such as this, especially in the all important Asia Pacific region

Indonesia- the nest big Asian FX hub?

The Taiwan Futures Exchange (TAIFEX) announced that it achieved a new record volume of 341,393,346 contracts in 2020, a 30.9% increase compared to 2019. Average daily volume (ADV) for the full-year also reached an all-time record at 1,393,442 contracts.

This result is yet another indicator that the retail trading sector, especially in South East Asia which is an epicenter of high volume market activity conducted largely by individual traders as a part time endeavor and via introducing brokers and money managers, is very much operating on a multi-asset basis, with exchange traded futures and equities at the very heart of the trading world.

Thus, it is clear that going down the multi-asset route is a long overdue natural progression for retail OTC derivatives brokerages if they want to onboard a new and large client base which has a longer lifetime value and requires a diversified product range.

TAIEX Options (TXO), the world’s sixth most traded equity index option ranked by the Futures Industry Association, increased 18.7% to 201,733,160 contracts in annual volume, setting a historical high. TAIFEX’s two other flagships saw even greater growth with Mini-TAIEX Futures (MTX) and TAIEX Futures (TX) increasing 101.9% to 60,051,670 contracts and 35.3% to 46,324,077 contracts, respectively. Strong market demand pushed MTX up to a record annual volume, averaging 245,109 contracts on a daily basis.

TAIFEX also made impressive headway in increasing foreign participation, as well as in attracting more liquidity to its after-hours trading session. In 2020, foreign institutional investors accounted for approximately 26% of TAIFEX’s total trading volume, up from 20.7% in 2019. After-hours trading increased 53.9% year-over-year (YoY), with an average of 348,567 contracts traded overnight, making up 25.0% of total ADV in 2020, up from 21.0% for 2019.

Likewise, the trading of TAIFEX’s foreign equity index products increased significantly, particularly for contracts tracking the three most widely-tracked US stock indices – DJIA Futures, S&P 500 Futures, and Nasdaq-100 Futures – among which the ADVs of the first two were up 16.4% and 8.5% YoY; the ADV of Nasdaq-100 Futures launched by TAIFEX in Q4 2019, on the other hand, tripled to about 3,000 contracts. TAIFEX’s suite of US index futures provide investors with a one-stop shop to collectively manage their risks in the US market.

Looking into the future, TAIFEX plans to introduce more mini sector index futures and mini single stock futures, and remains devoted to the provision of a safe and transparent marketplace for market participants to manage their risks, as well as to fulfil their trading purposes amid this time of uncertainty.

Read this next

Retail FX

ThinkMarkets expands CFDs lineup to over 4000 ETFs and shares

ThinkMarkets has expanded its service offering by incorporating 2500 new CFDs on shares and ETFs on its ThinkTrader platform.

Retail FX

France regulator warns investors of Omega Pro, Businessempire.fr

France’s financial markets regulator alerted investors that scams related to Omega Pro Ltd are beginning to circulate, with the blacklisted firm capitalizing on the situation to run a range of “unrealistic” offers.

Digital Assets

Web3 platform Grand Time paid $2 million in token earnings to date

Community-driven Web3 platform Grand Time said its offering – which includes a multifaceted platforms and its native token – has been gaining significant traction highlighted by impressive operational metrics.

Institutional FX

FX volumes at MOEX halved in April as ruble gains gorund

Currency trading at Moscow Exchange (MOEX) halted its upward route in April as monthly volumes nearly halved from a month earlier.

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.


Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.