Derivatives exchange Eurex Zürich, a subsidiary of Germany’s Deutsche Börse Group, is becoming a minority shareholder of the Taiwanese futures exchange Taifex.
Subject to regulatory approval by the Taiwanese authorities the Investment Commission and Ministry of Economic Affairs), Eurex will acquire a 5% stake in Taifex from Taiwan’s Yuanta Financial Holdings.
The agreed purchase price is US$47m. The Yuanta Group will remain a shareholder in Taifex after the planned sale of the 5% stake.
“With this acquisition we are strengthening our strategic partnership with Taifex,” said Andreas Preuss, Eurex chief executive officer (CEO) and deputy CEO of Deutsche Börse.
“Jointly, we want to contribute to the internationalisation of the Taiwanese financial market. For us, this step is a further milestone in implementing Deutsche Börse Group’s Asia strategy. Taifex is excellently positioned, especially in Greater China, for the future internationalisation of the derivatives markets.”
Starting in May, Eurex and Taifex plan to list daily futures based on futures and options on the Taiwanese blue-chip Taiwan Stock Exchange Capitalisation Weighted Stock Index and Industrial Sub-Indices, aka the TAIEX series, for the first time after Taiwanese trading hours at Eurex Exchange.
The Eurex/Taifex Link has already been approved by the Taiwanese regulator, the Financial Supervisory Commission (FSC). Both partners are also holding ‘very constructive’ talks on further joint projects.
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