The Taiwan Futures Exchange (TAIFEX) will launch micro TAIEX futures (TMF) on 29 July, with the aim of providing traders with increased flexibility and accessibility in capital management.
The addition to its product lineup addresses the rising index levels and evolving demands of the Taiwan market, according to TAIFEX.
Since 2023, the TAIEX index has increased significantly by more than 9,000 points, recently exceeding the 24,000-point milestone for the first time.
This growth has increased the contract size of mini-TAIEX futures (MTX), which now exceed NT$ 1.2 million per contract, up from roughly NT$ 270,000 when first introduced in April 2001.
“In response to the heightened trading thresholds associated with MTX and TAIEX futures (TX), the introduction of TMF offers a more accessible and versatile trading instrument,” TAIFEX said in a statement.
TMF features a multiplier of NT$ 10 per index point, correlating into a contract size of NT$ 240,000 at an index level of 24,000 points.
“This new contract size is one-fifth that of MTX and one-twentieth that of TX, providing investors with a highly adaptable and precise trading tool. The reduced contract size facilitates finer position adjustments and more efficient execution of hedging or trading strategies, allowing investors to respond swiftly to market changes and enabling better capital allocation across a broader spectrum of assets,” added TAIFEX.