Introduction - Taipei Exchange

Products:
- Bond Forward
- Bond Option)
- Interest Rate Swap (IRS)
- Forward Rate Agreement (FRA)
Basic Contact Terms
- Bond Forward
  1. Underlying Bonds: 1+ Years Taiwan Government Bonds
  2. Tenor: 1、2、3 and 4 weeks
  3. Standard Amount: NTD 50 million
  4. Quote: Yield Rate
  5. Settlement Method: Bond / Cash
- Bond Option
  1. Underlying Bonds: 1+ Years Taiwan Government Bonds
  2. Tenor: 1、2、3 and 4 weeks
  3. Option Type: European
  4. Standard Amount: NTD 100 million
  5. Quote: Yield Rate
  6. Settlement Method: Bond / Cash
- IRS
  1. Notional Amount: NTD 300 million & 500 million
  2. Tenor: 1, 2, 3, 4, 5, 7, 10, 15 & 20 Years
  3. Effective Date: T+2 (Taipei)
  4. Calculation Period: 3 Months (Taipei)
  5. Payment Date: End Day of Calculation Period
  6. Reset Date: 2 Days Before the First Day of Calculation Period
  7. Day Count Fraction: Actual / 365
  8. Business Day Convention: Modified Following Business Day
- FRA
  1. Notional Amount: NTD 1 billion
  2. Calculation Period: 3 Months
  3. Type: 1×4、2×5、3×6、6×9 & 9×12
  4. Effective Date: T+2
  5. Reset Date: 2 Business Days Before Payment Date
  6. Day Count Fraction: Actual / 365
  7. Business Day Convention: Modified Following Business Day
Trading Session
- Bond Forward、Bond Option: 09:00-13:30。
- IRS、FRA: 09:00-16:00。
Uses
- Dealers: Certificated financial institutions.
- Non-Dealers: Only limited to complete trades with dealers.
Counterparties list management
Counterparties who can only offer quotes to each other while they have signed the ISDA master agreement. Users can also set up quoting groups and a non-quoting list to manage the quoting process.
Trading Methods
- Offer quotes on the system
- Accept quotes on the system
- Ask inquiries to specific counterparties
Credit Line Management
- The system will check the credit line of both sides before a deal is done.
- Trading manager can assign the limit amount to different user/trader which is calculated by the notional amount of the contracts.