Page 57 - Taiwan Futures Exchange 2019 Annual Report

Meanwhile, recognizing that biotech is a key focus of Taiwan's national development initiatives, that the potential demand for hedging and trading opportunities in biotech and healthcare products is high, and that domestic investors require a broad array of trading options and risk-management tools, TAIFEX plans to introduce TIP Taiwan Market Biotechnology and Medical Care Index Futures (TIP Taiwan Bio Futures) at the same time on June 8 2020. We will also facilitate additional licensing arrangements with foreign exchanges and foreign index-compiling institutions to support the ongoing rollout of foreign equity index futures and to boost the growth of the Taiwan futures market. 二、強化制度改革與創新 為打造更穩健、更便利交易環境，期交所分階段推動期貨市場動態價格穩定措施，目前適用國 內外股價指數期貨及臺指選擇權，2020年6月8日將匯率類期貨及ETF期貨納入動態價格穩定措施適 用範圍，並持續優化期貨市場動態價格穩定措施。 在結算制度部分，持續強化期貨集中市場風險控管機制，並與期貨公會共同推動強化交易人 權益保護及風控措施。同時為強化我國店頭衍生性金融商品市場之風險管理、增進市場效率及透明 度，推動制度與國際接軌，持續推動建置我國店頭衍生性金融商品集中結算機制。透過集中結算機 制之財務防衛資源(保證金、交割結算基金、賠償準備金)及違約處理程序，預期有助於降低違約事 件系統性風險，強化市場風險管理，促進金融市場穩定。 此外，研議修訂期貨集中交易市場結算會員交割結算基金繳存及違約金額分擔方式，適切反映 結算會員分擔期貨集中交易市場違約損失風險程度及強化財務安全防衛資源配置效益，以促進我國 期貨市場發展。 II. Improvement and Innovation of Rules TAIFEX will continue to extend its Dynamic Price Banding Mechanism to create a more robust trading environment. The mechanism currently applies to domestic and foreign equity index futures, and TAIEX Options. We will extend it to FX futures and ETF futures on June 8 2020, and will continue to optimize it. In the area of clearing rules, we will continue to strengthen the futures market's risk management mechanisms, and work with the Chinese National Futures Association (CNFA) to better safeguard traders' rights and improve risk-management measures. We will also strengthen the efficiency, transparency, and risk management of Taiwan's OTC derivatives market, introducing rules in alignment with international norms and continuing to work towards the establishment of a centralized clearing mechanism for OTC derivatives. We expect this centralized clearing mechanism's financial protection resources (including defaulting clearing member's clearing margin, the Clearing and Settlement Fund, and the Compensation Reserve Fund) and the default waterfall scheme to reduce the systemic risk of defaults, strengthen the market's risk controls, and provide greater stability to Taiwan's financial markets. 53