TWCX's Corporate Sector can now Trade Mini Currency Futures

In a first for Taiwan corporate sector, these organizations will be able to hedge their currency risk by trading currency futures on the Taiwan Commodity Exchange TWCX's. End Quote

(1888PressRelease) May 01, 2014 - Previously only individuals were allowed to trade Currency Futures without restriction. Now also permits all corporate entities to trade with no restrictions. This implies that corporate sector can trade the futures with no upper limit on the value traded.

All investment managers, pension funds and long term insurers may also trade the currency futures provided their trades do not fall outside their increased prudential limits. All investment managers' prudential limits have increased from 25% to 30% while pension funds and long term insurer's limits have increased from 15% to 20%.

Taiwan Commodity Exchange second application, which motivated corporate trading the currency futures, was made in direct response to corporate demands for such a product to be traded on a regulated exchange.

Currency futures are derivative contracts which allow investors to trade the underlying exchange rate for a period of time in the future. Currency futures offer numerous benefits to corporate trading and the qualifying audience, including; hedging against currency risk, taking a view on the movement of the underlying exchange rates and diversifying internationally.

According to Cheng Ying-Git, Director of Trading at the TWCX, "This new service enhances the financial markets and thereby further aligns of TWCX with international standards."

Futures alike with the forward contracts allow corporate entities to hedge out their currency risk. Importers and exporters for example may therefore successfully hedge the value of a foreign exchange transaction with the futures contracts. Mr. Ying-Git commented that "futures contracts are exchange traded contracts which offer sufficient liquidity to investors. Investors can therefore enter and exit a futures contract with ease".

About TWCX
Taiwan Commodity Exchange (TWCX) is a world class commodities exchange based in Taipei. It has operated as a market place for the trading of financial products to connect buyers and sellers in four different markets: commodities, equities derivative, foreign currency trading and interest rate products.

TWCX is one of the top exchanges in the world in terms of Market Capitalization. TWCX is the market of choice for local and international investors looking to gain exposure to the leading capital markets in Southeast Asia and the broader Asian continent.

http://www.twcx.org

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