Monday June 30 2025
News Source: Global Exchanges
Focus: Clearing & Settlement
Type: General
Country: Taiwan
On 30th June 2025, Taiwan Futures Exchange (TAIFEX) issued an announcement stating that Taiwan will launch Mandatory Clearing Regime for Taiwan Dollar Interest Rate Swap (TWD IRS) Enhancing Market Transparency and Regulatory Efficiency,
Responding to evolving global regulatory trends and aiming to further strengthen the resilience of Taiwan’s financial markets, the Financial Supervisory Commission (FSC) announced on March 18, 2025, a clearing mandate for New Taiwan Dollar (TWD) interest rate swap (IRS) transactions, effective from July 1, 2025. Starting from that date, all newly executed TWD IRS transactions between eligible financial institutions must be centrally cleared through the Taiwan Futures Exchange (TAIFEX).
Eligible counterparties include banks (with Taiwan branches of foreign banks as well), securities firms, bills finance companies, insurance companies, trust enterprises, leverage transaction merchants, and other designated financial institutions authorized to engage in derivatives business.
The introduction of mandatory central clearing marks a significant step forward in the regulatory development and risk governance of Taiwan’s over-the-counter (OTC) derivatives market. Through standardized clearing mechanisms and effective operational processes, the regime enhances data transparency, consolidates risk management, and reduces systemic risk. It also underscores Taiwan’s commitment to aligning its regulatory infrastructure with global standards.
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