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TAIFEX: The Right Venue of Hedging Global Tech Supply Chains

In October 2019, following the successful launch of Dow Jones and S&P 500 Futures, Taiwan Futures Exchange (TAIFEX) introduced the world’s first offshore Nasdaq-100 index futures – TAIFEX Nasdaq-100 Futures, to provide traders for hedging the volatile global technology supply chains on one of Asia’s most forefront trading venues. The product features a small contract size and New Taiwan Dollar denomination, and enables traders to implement intermarket trading strategies between Taiwan and the US. Further, it strengthens TAIFEX’s ability to cater to the growing demand in Taiwan and the Asia-Pacific for offshore technology-sector exposure, including the popular FAANG stocks.

TAIFEX Nasdaq-100 Futures successfully gains momentum with an average daily trading volume (ADTV) of over 1,500 contracts in just its first month of launch. Joining TAIFEX’s US index product suite of S&P 500 and Dow Jones, Nasdaq-100 completes the Exchange’s last piece in offering three most widely-tracked US stock indices. Notably, the Exhange’s Dow Jones Futures is the most heavily-traded Dow futures overseas with ten thousand contracts traded on a daily basis. Investors are provided a one-stop shop overseas to collectively manage their exposure in the US market outside the US exchanges.

October also saw the launch of TPEx 200 Futures. Covering the fast-developing semiconductor, life science and healthcare industries, the TPEx 200 Index tracks the 200 largest companies listed on the Taipei Exchange (TPEx), the listing board for Taiwan’s most innovative technology SMEs and start-ups. As the global economy faces increasing headwinds, product such as Nasdaq-100 Futures and TPEx 200 Futures will help traders across the Asia-Pacific adopt more sophisticated trading