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TAIFEX receives SEC Class Relief for index, equity and ETF options

First Published 14th March 2016

The Taiwan Futures Exchange successfully obtains class no-action relief status for its index options, equity options and ETF options from the US Securities and Exchange Commission.

TAIFEX and its members can now market its TAIEX Options (TXO) and its newly listed ETF options to eligible broker-dealers and eligible institutions in the United States through U.S.-registered broker-dealers, in compliance with SEC regulations.

The granting of Class Relief will enhance TAIFEX' offerings, including its most actively traded product, TXO, which traded 784 thousand contracts on average daily in 2015. The Class Relief will also increase foreign participation in the Taiwan futures and options markets.

In addition to the Class Relief, previously TAIFEX has also been granted No-Action letters and Part 30 Exemption from the Commodity Futures Trading Commission (CFTC) for its TAIEX, Taiwan Stock Exchange Electronic Sector Index, Taiwan Stock Exchange Finance Sector Index, Mini-TAIEX, Taiwan Stock Exchange Non-Finance Non-Electronics Sub-Index and Taipei Exchange Capitalization Weighted Stock Index futures contracts.

TAIFEX hopes to utilize the Class Relief to further expand its business in the U.S. market, grow its overall foreign presence and build on consecutive record trading volume achieved over the past few years, including a historic high of 260 million contracts traded in 2015.