NYSE Euronext to Route to Taiwan Futures Exchange
October 16, 2012
NYSE Euronext said it will being routing orders to the Taiwan Futures Exchange, as part of an agreement to “explore bilateral business opportunities” involving the two organizations.
The routing of orders will help allow customers of both firms in Asia, Europe and the United States reach each other’s exchanges.
NYSE Euronext offers futures and options contracts through its NYSE Liffe derivatives exchange, once known as the London International Financial Futures and Options market.
The alliance will “support the development of the exchanges’ futures and options markets,’’ the exchange operators said, in a statement.
That will include two-way order routing, the development of new products and finding distribution channels for key products. The exchanges will also share resources, information and knowledge on best trading practices.
“NYSE Euronext is actively seeking strategic opportunities that enhance our regional footprint,” said Dominique Cerutti, President and Deputy CEO, NYSE Euronext. “This partnership with TAIFEX demonstrates our commitment to unlocking markets.’’
Collaboration between exchanges “has become increasingly important,” said TAIFEX president Steve Wang. “TAIFEX and NYSE Euronext will leverage unique knowledge from each other’s market.’’
NYSE Liffe is the world's second-largest derivatives business by value of trading.
TAIFEX, created in 1997, offers stock index futures and options, interest-rate futures, single stock futures, equity options and gold futures and options.
In Europe, NYSE Euronext separately said it is launching a Retail Matching Facility for stocks.
The facility meets European regulatory restrictions, the NYSE said, and appears to be similar to the Retail Liquidity Program launched August 1 in the United States.
NYSE Euronext member banks and brokers can execute their retail order flow via the Retail Matching Facility (RMF) against new price improving liquidity provided by Retail Liquidity Providers.
Furthermore, they will not be required to invest in new connections as they will be able to use their existing access to the European regulated cash markets.
The liquidity providers will be required to be present at the European Best Bid and Offer spread 95% of the trading day.
“The aim of NYSE Euronext’s Retail Matching Facility is to promote a more competitive, transparent environment for retail investors than they currently achieve through bilateral, internal arrangements with intermediaries,” said Alicia Suminski, Head of Market and Product Development, European Equity Cash and Derivatives.