TAIFEX Expands Offshore Index Futures Suite With The Launch Of FTSE® 100 Futures
The Taiwan Futures Exchange (TAIFEX) will launch a new offshore futures contract tracking the FTSE® 100 Index, the leading stock market indicator of the UK and one of the world’s most recognized indices, on November 23, 2020. The listing of the new product expands TAIFEX’s popular suite of international equity index futures – tracking the major US and Japan markets – and extends its reach to Europe for the first time. The new product also intensifies the cooperation between TAIFEX and FTSE Russell following the launch of Asia’s first ESG futures earlier this year.
The new FTSE® 100 Futures enables investors to gain exposure to the largest and most liquid segments of the UK equity market. The product is based on the FTSE®100 Index that tracks the performance of 100 UK-listed blue chip companies, many of which have substantial presences in the Asia-Pacific, including global financial institutions, HSBC and Standard Chartered; top miners, Glencore, BHP and Rio Tinto; and pharmaceutical manufacturers, AstraZeneca and GlaxoSmithKline.
Cash-settled and denominated in Taiwan dollars (TWD), TAIFEX’s FTSE 100 Futures is designed in a small contract size with a multiplier of TWD 50 (approx. USD 1.7) per index point, making it a cost-efficient, convenient and flexible trading instrument for investors. The contract will also be available during TAIFEX’s night session (3:00 pm to 5:00 am, GMT+8), covering the trading hours of European and U.S. markets.
Over the years, TAIFEX’s efforts to diversify its offshore offerings have strengthened its position as a hub for trading foreign equity index futures in Asia. This is also driven by both robust domestic liquidity and growing numbers of active international investors, with the latter now making up around half of the volume of TAIFEX’s Dow Jones, S&P 500 and Nasdaq-100 index futures. Joining this line-up, the new FTSE® 100 Futures will further enhance TAIFEX’s ability to cater to offshore investors pursuing transatlantic hedging and trading strategies, while risk-managing the global exposure of their portfolio in a timely manner.
With the addition of FTSE® 100 Futures and the broadening of equity index product line-up, TAIFEX continues to commit to bringing greater diversity of products to the market and responding to the evolving needs of its participants, amid the time of uncertainty.
Appendix: Product specifications for FTSE 100 Index Futures (see following pages)
Contract Specifications of TAIFEX FTSE® 100 Index Futures
|
Item |
Description |
|
Underlying Index |
FTSE® 100 Index |
|
Ticker Symbol |
F1F |
|
Trading Hours (Taipei Time, GMT+8) |
l Trading days conform to regular exchange trading days l Regular Session: 8:45~13:45 l After-hours Session: 15:00~5:00. The expiring contract on the last trading day trades until 18:15. In the event during British Summer Time, trading in the expiring contract shall end at 17:15. |
|
Contract Size |
TWD 50 x TAIFEX FTSE® 100 Futures Price |
|
Minimum Price Fluctuation |
1 index point (TWD 50) |
|
Delivery Months |
Four months in the March Quarterly Cycle (Mar, Jun, Sep, Dec) |
|
Daily Settlement Price |
The daily settlement price is the volume weighted average price, which is calculated by dividing the value of trades by the volume within the last one minute, or as otherwise determined by TAIFEX according to the Trading Rules. |
|
Daily Price Limit |
3-Level Price Limits at ±7%, ±13% and ±20% of the daily settlement price of the preceding regular trading session |
|
Last Trading Day |
The third Friday of the contract expiration month (If the third Friday is not a scheduled business day of the underlying cash market, the last trading day shall be the preceding business day of the underlying cash market) |
|
Final Settlement Day |
The first business day following the last trading day |
|
Final Settlement Price |
The Expiry Value of the FTSE® 100 Index on the last trading day |
|
Settlement |
Cash settlement |
* “FTSE® ” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited (“FTSE”) under licence. All rights in the FTSE 100 Index (the “Index”) vest in FTSE or its licensors. Neither FTSE nor any of its affiliates or licensors: (a) assumes any liability, losses, damages, expenses or obligations in connection with any derivative product based on the Index; or (b) accepts any liability for any errors or omissions, fitness for a particular purpose or the results to be obtained from the use of the Index or related data. No party may rely on the Index or related data contained in this communication which Index and data is owned by FTSE or its affiliates. No use or distribution of the Index is permitted without FTSE’s express written consent. FTSE does not promote, sponsor or endorse the content of this communication nor any financial or derivative product that it relates to.