ESMA Approved TAIFEX’s New Clearing Service in TWD NDF

On June 12, 2024, the Taiwan Futures Exchange (TAIFEX) was notified by the European Securities and Markets Authority (ESMA) that the application submitted on June 28, 2023, for the addition of New Taiwan Dollar Non-Deliverable Forward (TWD NDF) clearing service has been officially approved and is effective on the date of notification.

In compliance with Article 25 of the European Market Infrastructure Regulation (EMIR), Third-Country Central Counterparties (TC-CCPs) must notify ESMA of any service extensions or reductions. This allows ESMA to review compliance and assess the impact on the EU market. Accordingly, TAIFEX notified ESMA of its plan to extend clearing services on June 28, 2023, and began offering client clearing and TWD NDF clearing services on July 31, 2023. After confirming TAIFEX's full regulatory compliance, ESMA approved the application on June 12, 2024.

TAIFEX is committed to researching the frameworks of international organizations and analyzing the systems of major foreign clearinghouses to develop a clearing mechanism that aligns with international standards. By adhering to the Principles for Financial Market Infrastructures (PFMI), disclosing quantitative information, and optimizing risk management, TAIFEX fosters an environment conducive to participation by both domestic and international institutions. TAIFEX's ongoing efforts have been continuously recognized by foreign financial regulatory authorities. Since the commencement of OTC central clearing services on July 25, 2022, TAIFEX has received recognition from various international financial regulatory bodies. On December 31, 2022, TAIFEX was recognized by ESMA as a TC-CCP. Furthermore, on October 13, 2023, TAIFEX was approved by the Japan Financial Services Agency (JFSA) to be exempted from licensing for TWD IRS clearing, and on February 14, 2024, it was granted the Exemption from Derivatives Clearing Organization registration by the U.S. Commodity Futures Trading Commission (CFTC), significantly enhancing the competitiveness and international visibility of Taiwan's OTC central clearing services.

TAIFEX will continue to actively seek qualifying central counterparty (QCCP) recognition from other countries, aligning with international standards, and diligently adhering to regulatory requirements. This effort will enhance foreign financial institutions' confidence in Taiwan's market, promote the internationalization of Taiwan's financial market, and expand its global influence.

Public link

Please use the above public link if you want to share this noodl on another website.