|Taiwan Futures Exchange|
The Taiwan Futures Exchange (TAIFEX; Chinese: 臺灣期貨交易所; pinyin: Táiwān Qíhuò Jiāoyì Suǒ; Pe̍h-ōe-jī: Tâi-oân Kî-hòe Kau-e̍k-só͘) was established in 1998. It offers futures and options on major Taiwan stock indices, government bond futures, equity options and 30-day CP interest rate futures.
The development of Taiwan's futures market may be divided into two stages. In the first stage, foreign futures were allowed for trading; the second stage marked the creation of a domestic futures market. The Foreign Futures Trading Law was enacted in June 1992 to provide a legal basis for investors to trade at foreign futures markets. The Futures Trading Law was enacted in March 1997, which replaced the Foreign Futures Trading Law and established the legal guidelines for the domestic futures market. This paved the way for the establishment of TAIFEX in September of the same year.
Along the years the TAIFEX have sought to diversify its products seeking to offer more hedging vehicles for investors.