TAIWAN: TAIFEX Receives CFTC’s Commission Certification for Mini Finance Sector Futures

Thursday December 9 2021

On 8^th December 2021, the Taiwan Futures Exchange’s (TAIFEX) announced that Mini Finance Sector Futures contracts (ticker symbol: ZFF), launched on December 6^th, 2021, have received Commission Certification from the U.S. Commodity Futures Trading Commission (CFTC). The Mini Finance Sector Futures can now be offered and sold to U.S. persons.

The underlying index of Mini Finance Sector Futures is the TAIEX Finance and Insurance Sub-Index, same as that of TAIFEX’s Finance Sector Index Futures (ticker symbol: TF). The financial industry is one of foreign investor most interested investing industries in Taiwan’s stock market. According to Taiwan Stock Exchange’s statistics, foreign shareholding in financial sector accounted for 23.11% at the end of November 2021, while half of the trading volume of TAIFEX’s Finance Sector Index Futures from January to November this year comes from foreign investors.

Featuring contract value at a quarter of the Finance Sector Index Futures, Mini Finance Sector Futures enables investors to offset four contracts of ZFF against one contract of TF in their position. Complementing Finance Sector Index Futures, newly launched Mini Finance Sector Futures now allow investors to trade Taiwan financial industry with greater flexibility and precision.

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