Eurex is acquiring a $47 million stake in theTaiwanese futures exchange TAIFEX, in a step forward for Deutsche Börse Group’s Asia strategy.
Eurex Zürich, which is a subsidiary of Deutsche Börse, is becoming a minority shareholder of TAIFEX by purchasing a 5 percent stake in the firm from Yuanta Financial Holdings, which will remain a shareholder in TAIFEX.
Reports suggested that the sale was due to regulatory constraints on Yuanta. After the firm merged with Polaris Securities and Polaris MF Global Futures in April 2011, it was suggested that its shares then exceeded the regulator's limit of 5 percent of total shares in circulation.
“With this acquisition we are strengthening our strategic partnership with TAIFEX. Jointly, we want to contribute to the internationalisation of the Taiwanese financial market. TAIFEX is excellently positioned, especially in Greater China, for the future internationalisation of the derivatives markets,” said Andreas Preuss, Eurex CEO and deputy CEO of Deutsche Börse AG.
From May 2014, Eurex and TAIFEX are planning to list daily futures based on futures and options on the Taiwanese blue-chip index TAIEX for the first time after Taiwanese trading hours at Eurex Exchange. This Eurex/TAIFEX Link has already been approved by the Taiwanese regulator, the Financial Supervisory Commission.
Both partners are also holding what a statement called “very constructive talks” on further joint projects.
This is not the first push for cross regional collaboration. IntercontinentalExchange, the electronic commodities trading platform, was arguably the first off the starting post. The Atlanta-based firm purchased the International Petroleum Exchange in London in 2001, changing tis name to Ice Futures Europe, and more recently acquired NYSE Euronext in November to gain ownership over the LIFFE exchange, which has a large share of the market in European derivative contracts.
