The Taiwan Futures Exchange (Taifex) has received approval from the European Securities and Markets Authority (ESMA) to extend its clearing services to include New Taiwan Dollar Non-Deliverable Forwards (TWD NDF). The approval, effective immediately, followed Taifex’s application submission on 28 June 2023 according to Taifex.
According to Article 25 of the European Market Infrastructure Regulation (EMIR), Third-Country Central Counterparties (TC-CCPs) must inform ESMA of any service changes for regulatory review. Taifex notified ESMA of its new clearing service plans in June 2023 and launched client clearing and TWD NDF clearing services on 31 July 2023. Following a compliance review, ESMA confirmed Taifex’s adherence to regulatory standards.
Taifex’s strategy involves aligning with international frameworks and standards, such as the Principles for Financial Market Infrastructures (PFMI), to enhance transparency and risk management. These efforts aim to facilitate participation from both domestic and international institutions.
Since starting OTC central clearing services in July 2022, Taifex has gained recognition from several international regulators. These include ESMA’s TC-CCP status in December 2022, an exemption from Japan’s Financial Services Agency in October 2023, and a similar exemption from the U.S. Commodity Futures Trading Commission in February 2024.
