Page 11 - Taiwan Futures Exchange 2019 Annual Report

mechanism on 1 October. In the area of clearing and settlement, these new measures included: on 29 March increasing the period used to calculate the risk coefficient of margins for every product from one day to two days, and incorporating business cycle determinants into the calculation; on 9 July amending the default waterfall scheme for handling a default by clearing members, and the responsibility for the final settlement of contracts; and on 1 October adjusting how margins are calculated for combination positions involving short calls and puts, introducing “C-value” to the combination position margin calculation. In addition, TAIFEX continued its work on a centralized clearing mechanism for OTC derivatives. On 16 January 2019, the Futures Trading Act was revised, creating a legal basis for centralized clearing of OTC derivatives. On 24 June, our regulator designated TAIFEX as the clearing house for centralized trading of OTC derivatives. TAIFEX began planning the establishment of a centralized OTC-derivatives trading mechanism for Taiwan, which will strengthen the foundations and spur the further development of Taiwan's financial markets. In the area of international exchange and business promotion, TAIFEX participated in a variety of global organizations and events, including the annual conferences of the Association of Futures Markets (AFM), the Futures Industry Association (FIA), FIA Asia, the International Organization of Securities Commissions (IOSCO), the International Options Market Association (IOMA), the Global Association of Central Counterparties (CCP12), and the World Federation of Exchanges (WFE), as well the FIA Expo. These conferences and gatherings helped us to gain a firmer grasp of major international issues and development trends. TAIFEX also arranged a number of roadshows, visiting international investors in South Korea, Singapore and the United States to spur foreign institutional interest in our market by promoting Taiwan's futures products; taking in the views of foreign institutional investors; and providing relevant assistance. In September, TAIFEX organized FIA Forum: Taipei 2019, an event which attracted nearly 300 participants representing domestic and foreign exchanges, securities and futures firms, banks, investment consultancies, mutual funds, and information vendors. TAIFEX also continued to cooperate with the Deutsche Börse Group on the distribution of the market data overseas. This partnership has proved fruitful, increasing the number of foreign firms contracting to use the trading information from 41 in 2018 to 53 in 2019. 7