By: Sophia Yang, Taiwan News, Staff Reporter
In the midst of the worst global market sell-off since the financial crisis of 2008, some Taiwanese investors are seeking refuge in futures to offset the risk of adverse price movement. A Financial Times story recently identified 12 black swans that are awaiting to disturb global equity markets throughout 2016, including the oil price slump, shares sell-off by Middle East sovereign wealthfunds for cash, Chinese yuan devaluation, political uncertainty before U.S. presidential election, and so forth, sparking anxiety among global capital markets.
Turbulence over the past year sent investors seeking a hedge or a safe haven of the future for their investment portfolios. Accordingly, Taiwan Futures Exchange saw an average daily trade volume exceeding the 1 million contracts benchmark in 2015, with an increase of nearly 44 percent on a yearly basis. The launch of four new products—TOPIX index futures, RMB futures, ETF futures and options—also contributed to the sharp increase in volumes. [FULL STORY]