I. News and Events

TAIFEX Newsletter | No. 168 | October 2019

I. News and Events

 An Impressive Performance Observed for Nasdaq-100 Futures and TPEx 200 Futures TAIFEX Nasdaq-100 Futures (UNF) and TPEx 200 Futures (G2F) started trading on October 1 as the slated launch date, September 30, was a day off due to the typhoon. The first day’s trading volume for UNF and G2F reached 2,055 contracts and 1,226 contracts, respectively, indicating a great start and strong growth potential.

 Taiwan Strategy Series Indices to be Launched in December

Taiwan Futures Exchange (TAIFEX) and Taiwan Index Plus Corporation (TIP), a wholly-owned subsidiary of Taiwan Stock Exchange (TWSE) have announced to publish the Taiwan Strategy Indices by the end of 2019. The Taiwan Strategy Index family is comprised of different types of indices, including rolling futures index, covered call index, market neutral index, etc, and can be used as underlying of ETFs, ETNs, warrants or OTC products. These easily accessible investment vehicles enable institutional or individual investors to enhance investment return or implement hedging strategies, making innovative derivative strategies available through index investing.

 TAIFEX Received Commission Certification for its TPEx 200 Futures Contracts TAIFEX newly-listed TPEx 200 Futures has been granted Commission Certification by the U.S. Commodity Futures Trading Commission (CFTC) and can now be offered and sold to American participants. TPEx 200 Futures is based on the broad-based TPEx 200 Index, one of the major benchmarks for small and medium enterprises (SMEs) in Taiwan stock market. In addition to TPEx 200 Futures, to date TAIFEX has obtained CFTC’s Commission Certification for TAIEX Futures, Mini-TAIEX Futures, Finance Sector Index Futures, Non-Finance Non-Electronics Sub-Index Futures, Taipei Exchange Stock Index Futures, TOPIX Futures, DJIA Futures and S&P 500 Futures.

 Margins Adjusted on Part of TAIFEX Products

TAIFEX adjusted margins of TAIEX Futures, Mini-TAIEX Futures, Electronics Sector Index Futures, and Brent Crude Oil Futures, becoming effective in the after-hours session on October 2 (margining table). In addition, to enhance the trader’s risk-bearing capacity and secure the market stability, TAIFEX increased margins for short straddle/strangle positions of TAIEX Options with an increment in margin requirements (C-value). The additional margin of short straddle/strangle strategies for TAIEX Options will be adjusted in accordance with market conditions and published by TAIFEX. For more information, please visit the website.

TAIFEX Newsletter | No. 168 | October 2019

II. Statistics

 TAIFEX Trading Volume

Monthly Volume ADV Month-End Ticker YTD Volume Contract Jan-Sept OI Symbol September 2019 September 2018 Jan-Sept 2019 2019 Sept 2019 TX 2,264,527 12.5% 3,635,427 15.8% 26,228,377 13.5% 147,350 103,971 MTX 1,855,196 10.2% 2,740,820 11.9% 22,825,913 11.8% 128,235 41,126 TE 54,386 0.3% 79,906 0.3% 620,704 0.3% 3,487 3,660 TF 27,465 0.2% 31,446 0.1% 286,248 0.1% 1,608 2,480 XIF 3,132 0.0% 7,285 0.0% 34,045 0.0% 191 148 Index Futures GTF 1,306 0.0% 766 0.0% 8,578 0.0% 48 283 T5F 2,572 0.0% 1,354 0.0% 23,897 0.0% 134 124 TJF 15,610 0.1% 8,609 0.0% 116,268 0.1% 653 458 I5F 19 0.0% 5,185 0.0% 21,550 0.0% 122 0 SPF 16,095 0.1% 6,156 0.0% 159,296 0.1% 895 1,111 UDF 179,431 1.0% 86,832 0.4% 1,720,554 0.9% 9,666 4,359 TXO 11,785,813 65.1% 14,321,689 62.3% 125,260,574 64.5% 703,711 658,342 TEO 10,836 0.1% 20,330 0.1% 109,399 0.1% 615 1,125 Index Options TFO 3,305 0.0% 8,382 0.0% 41,746 0.0% 235 965 XIO 0 0.0% 0 0.0% 0 0.0% 0 0 GTO 0 0.0% 0 0.0% 8 0.0% 0 0 Single Stock Futures STF 1,713,383 9.5% 1,841,167 8.0% 14,396,303 7.4% 80,878 133,716 Equity Options STO 14,452 0.1% 13,371 0.1% 154,452 0.1% 868 4,627 Interest Rate Futures GBF 0 0.0% 0 0.0% 0 0.0% 0 0 TGF 13,149 0.1% 9,199 0.0% 109,610 0.1% 616 2,234 Commodities Futures GDF 1,264 0.0% 2,253 0.0% 15,845 0.0% 89 107 and Options TGO 2,842 0.0% 3,191 0.0% 34,669 0.0% 195 1,909 BRF 2,064 0.0% 3,337 0.0% 24,195 0.0% 136 169 ETF Futures ETF 58,790 0.3% 107,103 0.5% 878,059 0.5% 4,933 12,360 ETF Options ETO 13,520 0.1% 10,166 0.0% 122,066 0.1% 686 5,703 RHF 3,700 0.0% 2,685 0.0% 63,278 0.0% 355 922 RTF 15,159 0.1% 10,814 0.0% 244,386 0.1% 1,373 1,544 XEF 6,685 0.0% 8,380 0.0% 116,797 0.1% 656 459 FX Futures XJF 10,089 0.1% 2,903 0.0% 154,593 0.1% 869 640 XAF 5,228 0.0% 7,891 0.0% 92,588 0.0% 520 274 XBF 15,729 0.1% 9,132 0.0% 146,095 0.1% 821 487 RHO 628 0.0% 416 0.0% 12,302 0.0% 69 810 FX Options RTO 3,213 0.0% 6,451 0.0% 98,985 0.1% 556 2,913 2

TAIFEX Newsletter | No. 168 | October 2019 Monthly Volume ADV Month-End Ticker YTD Volume Contract Jan-Sept OI Symbol September 2019 September 2018 Jan-Sept 2019 2019 Sept 2019 Total 18,099,588 100.0% 22,992,646 100.0% 194,121,380 100% 1,090,570 987,026 Legend： TX: TAIEX Futures, MTX: Mini-TAIEX Futures, T5F: Taiwan 50 Futures, TE: Electronic Sector Index Futures, TF: Finance Sector Index Futures, TJF: TOPIX Futures, I5F: Nifty 50 Futures, SPF: S&P 500 Futures, UDF: DJIA Futures, GBF: 10-year Government Bond Futures, GDF: Gold Futures, GTF: Taipei Exchange Stock Index Futures, XIF: Non-Finance Non-Electronics Sub-Index Futures, TGF: TWD-Denominated Gold Futures, TXO: TAIEX Options, TEO: Electronic Sector Index Options, TFO: Finance Sector Index Options, GTO: Taipei Exchange Stock Index Options, XIO: Non-Finance Non-Electronics Sub-Index Options, TGO: TWD-Denominated Gold Options, BRF: Brent Crude Oil Futures, STF: Single Stock Futures, STC: Single Stock Options, ETF: ETF Futures, ETO: ETF Options, RHF: USD/CNH FX Futures, RTF: USD/CNT FX Futures, XEF: EUR/USD FX Futures, XJF: USD/JPY FX Futures, XAF: AUD/USD FX Futures, XBF: GBP/USD FX Futures, RHO: USD/CNH FX Options, RTO : USD/CNT FX Options. Note： ‒ The trading volume of after-hours session, introduced on May 15, 2017, is included in this table. ‒ 10-year Government Bond Futures (GBF) was delisted on 12 September 2019; Non-Finance Non-Electronics Sub-Index Options (XIO) and Taipei Exchange Stock Index Options (GTO) were delisted on 19 September 2019; Nifty 50 Futures (I5F) was delisted on 27 September 2019.

 Distribution of Participants

Participants Jan-Sept 2019 2018 2017 Securities Proprietary Trading 0.27% 0.34% 0.32% Futures Proprietary Trading 30.00% 30.13% 32.65% Securities Investment Trusts 0.22% 0.20% 0.27% Institutional Investors 52.24% 51.70% 50.00% Foreign Investors 20.97% 20.26% 16.13% Commodity Pool Operators 0.03% 0.04% 0.08% Other Institutional Investors 0.74% 0.72% 0.55% Retail Investors 47.76% 48.30% 52.32%