TAIWAN: FSC Announces Mandatory Clearing Order for TWD IRS

Friday March 21 2025

The Financial Supervisory Commission (FSC) announced that the mandatory clearing regulations for New Taiwan Dollar Interest Rate Swap (TWD IRS) will take effect on July 1^st, 2025. Starting from this date, banks, securities firms, bills finance companies, insurance companies, trust enterprises, leverage transaction merchants, and other financial institutions designated by the FSC will be required to submit their TWD IRS transactions, accepted for clearing by the Taiwan Futures Exchange (TAIFEX), for central clearing.

TAIFEX reminds firms that do not currently engage in TWD IRS transactions to onboard as either clearing members or clients before conducting such transactions. Additionally, financial institutions should ensure that their counterparties are also eligible for central clearing to comply with regulations. TAIFEX will continue to offer guidance and consultation services to assist new participants in adapting to the central clearing mechanism. Relevant information is available on the TAIFEX website under the OTC Central Clearing InfoHub.

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