SMX, TAIFEX to explore business opportunities

The Singapore Mecantile Exchange (SMX) and the Taiwan Futures Exchange (TAIFEX) signed a Memorandum of Understanding (MoU) to explore bilateral business opportunities, facilitate development of communication channels, and foster continuing partnerships beneficial to both countries’ financial services industries.

In a statement, the SMX said they will work towards sharing information relating to the technology to be used for and the design of derivative products, business development concepts and various marketing efforts, with a view to utilize the information to advance the development of markets operated by each exchange.

Mr. Thomas J. McMahon, SMX Chief Executive Officer, said: “We are very pleased to sign this MoU, and believe that in TAIFEX we have found an exchange-partner with depth and quality of expertise. In sync with our pan-Asian outlook and bespoke product range, SMX continues to pay special attention towards building cooperation between trade platforms and promoting interlocking markets. The terms of this MoU are adaptive and allow for significant cooperative developments to be made in both countries and we look forward to a longstanding and mutually fulfilling partnership.”

Mr. Steve Wang, TAIFEX President, said: "In response to the rapidly changing global financial landscape, TAIFEX and SMX will leverage unique knowledge from each other's markets."

He added that collaborations among exchanges have been increasingly important in the development of the derivatives markets, I believe that both TAIFEX and SMX will benefit after the establishment of this MoU.

Among many other cooperative features, the MoU will pave the way for TAIFEX and SMX to establish processes for regular bilateral meetings between senior executives to enhance understanding of each other’s market developments and activity; SMX and TAIFEX will also work on joint research projects and host seminars on topics of mutual interest to both parties.

Established in 1998, TAIFEX offers futures and options contracts on major Taiwan stock indices, government bonds, equity, interest rates and other commodities. With interface compatibility to connect foreign Futures Commission Merchants, non-Taiwan based liquidity can participate in TAIFEX derivatives markets through direct and/or omnibus accounts.

SMX went live for trading on 31 August 2010 as the first pan-Asian multi-product commodity and currency derivatives exchange. As an Approved Exchange licensed and regulated by the Monetary Authority of Singapore (MAS), SMX offers participants multi-asset and multi-currency pricing, trading and clearing for a diverse range of tradable commodities and other assets with guaranteed settlement and delivery.