Taiwan Futures Exchange to Launch Real-Time Market Data Feed in 2020


The Taiwan Futures Exchange TAIFEX will start providing live market data feed as of March 23, 2020. The exchange will also introduce continuous trading on the Taiwan stock market, which is currently adopting the call auction trading method during trading hours.

27 December 2019 | AtoZ Markets – Taiwan Futures Exchange TAIFEX plans to launch a new live market data feed. That aims to be more manageable for investors looking to consume real-time price and volume data. Market participants and information providers can choose to connect to the new real-time data feed or existing feed. That depends on their various needs. They also can obtain the latest information on market movements and discover trading opportunities.

TAIFEX Offers Live Market Data Feed Ahead of Continuous Trading

This initiative comes at a time when the Taiwan Futures Exchange is to introduce a “continuous trading” mechanism in March 2020. It is to improve trading efficiency and meet international standards. From March 23, market participants and information providers will be able to choose to connect to the new real-time data feed.

TAIFEX said the new trading mechanism would replace the call auction platform currently adopted by the local equity market. More specifically, the exchange platform will be able to match buy and sell orders as soon as they are declared. It compares to the existing mechanism which collects orders more than five seconds before the pairing occurs.

The exchange explains that real-time data feed will accelerate the pace of continuous trading, as traders will place orders and be matched in real-time. It added:

“With real-time data reflecting the continuous matching of trades on TAIFEX, market participants will be able to obtain the latest information on market movements. And they can discover trading opportunities. The new robust data feed will also significantly strengthen the capabilities of investors to deploy various trading strategies between the spot and futures markets.”

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About Taiwan Futures Exchange

TAIFEX established in 1997 as the only futures exchange in Taiwan. It offers trading in futures and options across multiple asset classes. That includes including stocks, indices, currencies, interest rates and commodities.

As far as the foreign exchange market is concerned, the central bank of Taiwan allows securities firms in the country to trade spot products. And it also will enable derivatives denominated in the Taiwan new dollar against foreign currencies.

In the interests of balance, the central bank has relaxed the requirements for the sale of foreign exchange derivatives. However, the regulator authorized local island brokers to process foreign exchange for the first time in 2013.

Taiwan is, in fact, the most fragmented brokerage market of all the Asian countries. It has also previously succeeded in consolidating the markets. However, the central bank’s decision aimed to benefit the country’s very active securities sector. It offers new sources of income to maintain profitability in a context of declining trading volumes and head-on competition in Taiwan’s domestic stock market.

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