Taiwan Futures Exchange (Taifex) announced the opening on Monday of its new central clearing business for over-the-counter derivatives.

The press release cites the purpose “to strengthen the stability of the financial market and gear to international regulatory standards”.

“[I]n the past, financial institutions have had to pay a considerable expense to submit their transactions for central clearing at foreign central counterparties, such as the LCH. The opening of the TAIFEX OTC derivatives clearing business allows financial institutions in Taiwan to clear their transactions domestically, realize the localization of finance services, improve the convenience of central clearing and reduce clearing costs,” the exchange operator asserts.