The Taiwan Futures Exchange (TAIFEX) is set to expand its derivatives offering with the introduction of two new futures contracts. The Taiwan Semiconductor 30 Futures (SOF) and Shipping and Transportation Sector Futures (SHF) are scheduled to debut on 27 June. According to the exchange, they have been launched in response to market demand for “industry-specific risk management tools”. Taiwan is the world’s leading producer of microchips and has the largest market share in the semiconductor industry. The futures will be based on the TIP Taiwan Semiconductor Total Market Select 30 Index which tracks the performance of the top 30 semiconductor companies by market capitalisation. Taiwan is also a prominent player in the global shipping market, another sector that has benefitted from the pandemic. The introduction of the futures continues TAIFEX’s efforts to widen its product range across themes and sectors in order to attract more foreign institutional investors and increase liquidity.   “With investors’ rising demand for hedging sector exposures, the Exchange anticipates steady growth for the new SOF and SHF contracts, similar to the momentum seen in the two mini futures contracts introduced in 2021 for the electronics and finance sectors,” stated the exchange. © 2022 funds global asia