Taiwan Futures Exchange targets retail investors with 2nd mini equity index futures rollout

台灣期貨交易所以散戶投資者為目標推出第二支小型期貨

ZEF's contract value at US$15,000 is one-eighth that of Electronics Sector Index Futures


TAIPEI (Taiwan News) — The Taiwan Futures Exchange (TAIFEX) is set to launch its second mini equity index futures contracts by the end of June in a bid to attract retail investors as they continue to jump into the market.

The launch comes a year after the miniature version of TAIFEX Futures (TX) overtook its larger counterpart to become the exchange's most heavily traded futures product. It also coincides with the trend of major international exchanges rolling out smaller versions of their widely traded futures contracts to help retail investors address equity market volatility.

TAIFEX said the upcoming Mini Electronics Sector Futures (ZEF) will cater to rising demand from retail investors who wish to gain exposure to stocks from Taiwan's leading tech companies, such as the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC); the world's largest designer of 5G handset chips, MediaTek; and Apple's largest iPhone manufacturer, Foxconn.

The COVID-19 pandemic has fueled the highest demand for personal computers in 10 years, according to a research report. Partly as a result, there has been a semiconductor shortage, which has also been felt acutely in the automotive industry.

Presently, increased global demand for chips is underlining the importance of TSMC and other Taiwanese chipmakers in the supply chain, which has raised interest from international investors and pushed up share-trading turnover for these stocks.

Meanwhile, the contract value of the Electronics Sector Index Futures (TE) has doubled since its launch.

To tap into the surge of retail investing, TAIFEX will launch the miniature version of the TE contract — ZEF — which has a contract value of US$15,000, one-eighth that of TE. The smaller version of TE will be available for trading in both regular and after-hours sessions, giving all investors a cost-efficient way to fine-tune their index exposure as well as the ability to manage their positions, the company said.