TAIFEX refers to the Taiwan Futures Exchange, which is a financial derivatives exchange located in Taipei, Taiwan. Established in 1997, it is the sole derivatives exchange in Taiwan and operates under the supervision of the Financial Supervisory Commission (FSC) of Taiwan.
TAIFEX provides a platform for trading various financial derivatives, including futures, options, and other derivative products. It serves as a market for individuals, institutional investors, and corporations to engage in trading activities related to underlying assets such as stocks, indices, interest rates, commodities, and currencies.
The primary function of TAIFEX is to facilitate price discovery and risk management for its participants. It enables market participants to hedge their market exposures, manage risks, and speculate on future price movements of various financial instruments. The exchange operates on an order-driven system where buyers and sellers can submit their orders electronically for execution.
TAIFEX is regulated by the FSC to ensure a fair, transparent, and efficient marketplace for all participants. It implements strict rules and regulations regarding product listing, trading, and settlement to maintain market integrity and protect the interests of investors.
As an important component of Taiwan's financial market infrastructure, TAIFEX plays a vital role in developing the local capital market and attracting domestic and international investors. It contributes to market liquidity, price discovery, and risk management, while providing a wide range of investment opportunities to participants.
