Nasdaq OMX Signs MOU with Taiwan Futures Exchange

Nasdaq OMX Group and the Taiwan Futures Exchange (TAIFEX) have signed an agreement to share information and best practices about product development, market operations and common interest areas in the derivatives market. The so-called Memorandum of Understanding or MOU was struck with the intent of forming a business partnership.

Both exchanges can leverage knowledge from each other’s markets, said President Steve Wang in the release. “Nasdaq OMX is an intercontinental and well established exchange that has made an impressive mark in the derivatives market,” stated Wang in the release.

According to Magnus Bocker, president of Nasdaq OMX, who is quoted in the release, “Taiwan is one of the fastest growing derivatives markets in one of the leading financial centers of the world and we look forward to drawing on their experience.” Bocker said this agreement further strengthens Nasdaq OMX’s presence in the Asia-Pacific region, where our technology today powers 12 exchanges.

TAIFEX currently trades 20 products including TAIFEX options, TAIFEX futures, equity options, NTD gold options, mini TAIFEX futures and NTD gold futures. TAIFEX has taken measures to align itself with international standards such as allowing investors’ trading for non-hedging purposes and introducing omnibus accounts, as well as accepting foreign currencies on margin deposits, margin reduction for day trades and implementing the (standardized portfolio analyisis of risk) margining systems and adopting eligible securities as margin collateral, according to the release.

The MOU signing took place on March 12 at the FIA Conference in Boca Raton, Florida.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio