Date: Feb 14, 2018
By: Ted Chen / Staff reporter
The Taiwan Futures Exchange (TAIFEX) yesterday said that heavy losses sustained by investors during a bout of volatility last week were the result of a lack of sound risk management and not caused by flaws in its trading mechanism.
Reacting to a steep overnight drop in the Dow Jones Industrial Average, the TAIEX tumbled 4.95 percent, or 542.25 points, to close at 10,404 on Wednesday last week.
During the session, a number of TAIEX options investors caught in the stampede following the market rout were left with especially heavy losses, which they said could have been avoided. [FULL STORY]