Published On: Mon, Mar 24th, 2014

TAIFEX Discloses Calculated Opening Prices During Pre-trading Session And Introduces MWP Order May 12

Tony C. Fan Taiwan Futures Exchange Chairman

Tony C. Fan Taiwan Futures Exchange Chairman

Starting from May 12, 2014, TAIFEX discloses calculated opening prices and volume, best 5 bids/ offers prices and corresponding volumes of simulated matching every 5 seconds for all contracts during 8:30 to 8:45. In addition, Non-Cancel Period (NCP) will be implemented during 2 minutes prior to opening of trading session (8:43 -8:45), orders can only be entered, but not deleted or modified. And the priority of matching same-price orders will be adjusted from random to time -priority.

In addition to market and limit order, TAIFEX introduces “Market with Protection (MWP) ” order from May 12, 2014.

(1)Definition
A “market with protection” order does not need to specify price when placed. After MWP is entered and received by TAIFEX trading system, a buy MWP will be converted to a limit order with the price of the current best bid plus a protected range, and a sell MWP will be converted to a limit order with the price of the current best offer minus a protected range. However, when no corresponding bid/offer is available, the MWP will be rejected.

(2)Order time/types
MWP orders are acceptable only during trading session and are restricted to FOK or IOC, ROD is not acceptable.For futures contracts, single and time spread orders are acceptable. For option contracts, only single orders are acceptable.

(3)Pre-Margin calculation and Risk Management: Same as market orders.

(4)Protection range

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