The trading volume at Taiwan Futures Exchange (TAIFEX) ended 2014 with a total of 202,411,093 contracts (last high recorded in 2011: 182,995,171 contracts), an all-time high since the open of business and its first time to exceed a 200 million benchmark.
Comparing to 2013, total trading volume and average daily trading volume (ADTV: 816,174 contracts) in 2014 posted growths of 32.1% and 31.04%, respectively. In terms of product types, total trading volume of futures in 2014 increased 15.37% from 2013, while for options it was an increase of 38.71%. Among the four major products – TAIEX Options (TXO), TAIEX Futures (TX), Mini-TAIEX Futures (MTX) and Single Stock Futures, Single Stock Futures showed the greatest growth (total trading volume: 9,508,470 contracts and ADTV: 38,341 contracts) of 74% from 2013, while TXO marked the second (total trading volume: 15,162,546 contracts and ADTV: 611,373 contracts), with a growth of 38.71%.
Since July 2014, with an overall upward direction of Taiwan’s cash market, trading and hedging has gained momentum in the futures and options market, and resulted in a faster-growing second half of the year and an all-time high total trading volume. In addition, the following incentive programs and mechanism, as well as new products, also contributed to TAIFEX’s volume growth:
– Incentive programs designated for Stock Index Futures, Single Stock Futures, and TXO;
-Multiple underlying assets were added to the Single Stock Futures family, including securities of GreTai Market (introduced May 2, 2014) and three ETFs (Yuanta/P-shares Taiwan Top 50 ETF, W.I.S.E. Yuanta/P-shares CSI 300 ETF, and Fubon SSE180 ETF; all introduced October 6, 2014);
– With more developed negotiated block trade (introduced in December 2013), market maker program was also adjusted in response to rapid market change;
– Active hosting of roadshows overseas to enhance foreign investors participation in Taiwan futures and options market;
– The open positions of Eurex/TAIFEX Link products (Daily Futures on TX and Daily Futures on TXO launched at Eurex on May 15, 2014) transferred from Eurex to TAIFEX also contributed to the growth.
The following table shows the total trading volume and ADTV of TAIFEX in the recent 5 years:
