萬國法律事務所

Taiwan’s Securities and Futures Bureau of the Financial Supervisory Commission published three new measures to liberalize the futures market this past March.  The measures, which went into effect on 27 March 2006, 1) open Taiwan’s futures market to foreign investors trading in US Dollars; 2) permit overseas futures dealers to open omnibus accounts in Taiwan; and 3) introduce US Dollar-denominated gold futures, MSCI Taiwan Index Futures, and MSCI Taiwan Index Options.  This liberalization comes on the heels of the government announcement late last year that taxes levied on futures transactions will be reduced.

The Securities and Futures Bureau explained that foreign national investors were only permitted to trade in futures in Taiwan in order to hedge risks according to the original regulations.  In order to increase participation in the futures market, the Securities and Futures Bureau opened the Taiwan domestic market to foreign national investors who desire to trade in non-risk-hedges and to introduce the omnibus accounting system to provide futures dealers an easier way to participate in Taiwan’s futures market.

During the past eight years, eleven products have entered the Taiwan futures market and the volume of trading has increased in each year.  Moreover, the growth rate in the most recent two-year period has reached, respectively, 85% and 56%.  The Unite States Futures Industry Association places the Taiwan futures market global ranking at spot number 18 in 2005, in terms of the volume of trades conducted in Taiwan.  This represents a substantial increase in volume traded as Taiwan’s futures market was previously ranked in the 57th spot.  Meanwhile, the volume of trading on Taiwanese Index Options has climbed all the way to 3rd place globally.