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Taiwan to Launch Financial Futures Night Trading

Taiwan to Launch Financial Futures Night Trading

A representative image of the Taiwan stock market. With the uncertainty surrounding equivalent tariffs escalating, nearly 40% of the trading volume in Taiwan's futures market this year comes from night trading, indicating that traders are increasingly seeking hedging opportunities during these hours. To meet market demand, the futures exchange plans to add financial futures and mini financial futures to the already listed Taiwan stock futures, electronic futures, semiconductor 30 futures, and Taiwan mid-cap 100 futures, with the new products expected to launch on the 23rd, enhancing the convenience of cross-product spread trading.

Trading financial futures allows investors to grasp trends in financial stocks and participate in their overall performance. The value of a financial futures contract is approximately NT$2.12 million, while a mini financial futures contract is around NT$530,000, with initial margins of NT$10,000 and NT$37,500 respectively—about 7% of the contract size. While financial stocks tend to be relatively stable, their price fluctuations reflect overall economic conditions and policy changes. With changing international political and economic circumstances, including variations in Trump's tariff policies, incorporating financial futures and mini financial futures into night trading will help traders respond to uncertainties effectively and manage overnight price gap risks.

The new night trading period for financial futures will match that of Taiwan stock futures, starting at 3 PM and continuing until 5 AM the next morning. Dynamic price stabilization measures will also apply, and the calculation methods for cancellation percentages and cancellation point calculations will mirror those of daytime trading. Furthermore, concerning risk management for traders, if the underlying index for financial futures is not open during the night session, it will be designated as a “permitted offsetting product” just like Taiwan stock futures. Futures dealers will handle risk management in the night session as per current practices.