Taiwan aims to allow trading in futures on individual stocks before the end of the year, giving the local derivatives market a major boost, financial officials said on Wednesday. The Taiwan Futures Exchange said it was preparing new rules and would submit them soon to the Financial Supervisory Commission, the island's top industry watchdog, for approval.
"Our target is for the new products to hit the market before the year's end," said an official at the exchange. Currently the Taiwan Futures Exchange offers futures and options on major Taiwan stock indices, government bond futures and equity options, but not on individual stocks.
Taiwan's government has so far restricted trading in derivatives in an attempt to reduce financial risk. However, officials are concerned the narrow choice of products has slowed down the island's development as a regional financial hub. An official at the Financial Supervisory Commission welcomed the proposal from the futures exchange.
Comments
Comments are closed.