萬國法律事務所

The one-by-one block trading system has been online since December 19, 2011, and the products traded in this system include TX, MTX, TXO and STF. In order to satisfy block trader’s needs and to expand the current futures market, the Taiwan Futures Exchange (TAIFEX) on December 2, 2013 will establish a new online block trading system, in which products will be traded by price negotiation.

To facilitate the new online system, TAIFEX will lower the threshold of the tactical block trading. However, the trading period, types of  products, minimum application amount, price range, and deposit for the block trading system by price negotiation will be the same as those for the one-by-one block trading system. After the traders have closed a deal and the parties, represented by their futures merchants, apply for block trading, the futures merchants must confirm that the security deposit is sufficient. The seller’s and buyer’s futures merchants must appoint a representative to register the block trading through the trading system platform or the Internet, and after receipt of a successful registration information from TAIFEX, each participating futures merchant must complete the trade detail application within 10 minutes.

After TAIFEX has examined all of the application information and ascertained that the applied amounts and prices comply with the block trading regulations, the application will be validated and the clearing member will be notified of the same. However, the application will become invalid and notification of the failed application thereof will be sent to the clearing member if the application is not filed within the required time period or if the application violates or otherwise does not comply with the block trading regulations. For valid applications for the block trading, after examining the holdings of applicant traders and confirming that the security deposits of clearing members comply with the regulations, TAIFEX will notify traders’ futures merchants, the clearing members, and the clearing system of the concluded deal message. The concluded information will be posted on the TAIFEX website.