Eurex Zürich, a subsidiary of Deutsche Börse Group, will acquire a 5% stake in Taiwanese futures exchange TAIFEX, subject to regulatory approval by Taiwan’s Investment Commission and Ministry of Economic Affairs.
Eurex will acquire its stake in TAIFEX from Yuanta Financial Holdings for $47 million. Yuanta will still remain a shareholder in TAIFEX.
“With this acquisition we are strengthening our strategic partnership with TAIFEX. Jointly, we want to contribute to the internationalization of the Taiwanese financial market. For us, this step is a further milestone in implementing Deutsche Börse Group’s Asia strategy. TAIFEX is excellently positioned, especially in Greater China, for the future internationalization of the derivatives markets,” says Andreas Preuss, Eurex CEO and deputy CEO of Deutsche Börse.
In addition to the minority acquisition, starting May 2014 the exchanges are planning to list daily futures on Eurex based on futures and options on the Taiwanese blue-chip index TAIEX when TAIFEX closes after Taiwanese trading hours. This Eurex/TAIFEX Link has already been approved by Taiwanese regulator the Financial Supervisory Commission.
Eurex says that both exchanges “are also holding very constructive talks on further joint projects.”
Eurex Zürich Acquires Stake in Taiwanese Futures Exchange
Eurex Zürich, a subsidiary of Deutsche Börse Group, will acquire a 5% stake in Taiwanese futures exchange TAIFEX, subject to regulatory approval by Taiwan's Investment Commission and Ministry of Economic Affairs.