Futures and Options on Foreign-Component ETFs to Adopt 3-Stage Price Limit Mechanism
Taiwan's Financial Supervisory Commission (FSC) announced on the 21st that to curb excessive reactions in the futures market, futures and options on foreign-component security ETFs will shift from the current single-stage 15% price limit to a three-stage mechanism. When triggered, a 5-minute cooling-off period will be initiated to help stabilize the market. The new system is scheduled for implementation on July 6 of this year.
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- 📰 Published: May 21, 2026 at 21:27
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(CNA, Taipei, 21st) Taiwan's Financial Supervisory Commission (FSC) stated today that to reduce excessive reactions in the futures market, it plans to change the current single-stage 15% price limit for futures and options on foreign-component security ETFs to a three-stage dynamic price banding mechanism. When a limit is triggered, a 5-minute cooling-off period will commence, contributing to market stability. The new rules are expected to be implemented from July 6 this year.
Huang Chung-Hao, Deputy Director-General of the FSC's Securities and Futures Bureau, stated that the underlying assets for futures and options include commodities, securities, and exchange rates. The securities category further includes individual stocks, indices, and ETFs. The adjustment this time targets products where foreign-component ETFs are the underlying assets for futures and options. The plan is to change the current single-stage 15% price limit to a three-stage mechanism.
Huang pointed out that considering the recent high volatility in domestic and international markets and sudden events causing large price swings, especially since the underlying assets in the futures market are inherently volatile, coupled with timing differences with other markets, the existing 15% price limit on ETF futures could still allow for abnormal price fluctuations. Therefore, the Taiwan Futures Exchange (TAIFEX) plans to introduce the three-stage mechanism to enhance risk management on the trading side.
Huang said that considering bond-type assets are less volatile, futures and options on foreign bond ETFs will adopt a three-stage price limit of 5%, 10%, and 15%. Futures and options on foreign equity ETFs will adopt a three-stage limit of 7%, 10%, and 15%.
He further explained that when a relevant product hits the first or second stage price limit, it will first enter a 5-minute cooling-off period. During this time, trading can continue within the existing price limit. After the cooling-off period ends, the price limit will be expanded to the next stage.
Regarding the subsequent process, Huang said that considering system adjustments, TAIFEX also needs to educate investors. Including testing and regulatory amendments, the plan is to launch on July 6.
Currently, there are 5 foreign bond ETFs from 4 asset management companies serving as underlying assets for futures or options, including Yuanta U.S. Treasury 20-Year Bond ETF, Yuanta U.S. Treasury 1-3 Year Bond ETF, CTBC High-Rated Corporate Bond ETF, Capital ESG 20+ Year Investment Grade Corporate Bond ETF, and Cathay 20-Year U.S. Treasury ETF. There are 8 foreign equity ETFs from 5 asset management companies, including Fubon SSE 180 ETF, Yuanta SSE 50 ETF, Cathay FTSE China A50 ETF, Fubon SZSE 100 ETF, Capital SZSE SME ETF, Fubon Vietnam ETF, Cathay Global Autonomous and Electric Vehicles ETF, and Uni-President FAN
Huang Chung-Hao, Deputy Director-General of the FSC's Securities and Futures Bureau, stated that the underlying assets for futures and options include commodities, securities, and exchange rates. The securities category further includes individual stocks, indices, and ETFs. The adjustment this time targets products where foreign-component ETFs are the underlying assets for futures and options. The plan is to change the current single-stage 15% price limit to a three-stage mechanism.
Huang pointed out that considering the recent high volatility in domestic and international markets and sudden events causing large price swings, especially since the underlying assets in the futures market are inherently volatile, coupled with timing differences with other markets, the existing 15% price limit on ETF futures could still allow for abnormal price fluctuations. Therefore, the Taiwan Futures Exchange (TAIFEX) plans to introduce the three-stage mechanism to enhance risk management on the trading side.
Huang said that considering bond-type assets are less volatile, futures and options on foreign bond ETFs will adopt a three-stage price limit of 5%, 10%, and 15%. Futures and options on foreign equity ETFs will adopt a three-stage limit of 7%, 10%, and 15%.
He further explained that when a relevant product hits the first or second stage price limit, it will first enter a 5-minute cooling-off period. During this time, trading can continue within the existing price limit. After the cooling-off period ends, the price limit will be expanded to the next stage.
Regarding the subsequent process, Huang said that considering system adjustments, TAIFEX also needs to educate investors. Including testing and regulatory amendments, the plan is to launch on July 6.
Currently, there are 5 foreign bond ETFs from 4 asset management companies serving as underlying assets for futures or options, including Yuanta U.S. Treasury 20-Year Bond ETF, Yuanta U.S. Treasury 1-3 Year Bond ETF, CTBC High-Rated Corporate Bond ETF, Capital ESG 20+ Year Investment Grade Corporate Bond ETF, and Cathay 20-Year U.S. Treasury ETF. There are 8 foreign equity ETFs from 5 asset management companies, including Fubon SSE 180 ETF, Yuanta SSE 50 ETF, Cathay FTSE China A50 ETF, Fubon SZSE 100 ETF, Capital SZSE SME ETF, Fubon Vietnam ETF, Cathay Global Autonomous and Electric Vehicles ETF, and Uni-President FAN
FAQ
這次漲跌幅機制調整主要針對哪些金融商品？
主要針對以「國外成分證券ETF」作為標的的期貨與選擇權商品。
新的三階段漲跌幅機制具體內容是什麼？
國外債券類ETF期貨及選擇權採5%、10%、15%三階段漲跌幅；國外股權類ETF期貨及選擇權則採7%、10%、15%三階段。
什麼是「冷卻時間」？
當商品價格觸及第一或第二階段漲跌幅限制時，會進入5分鐘的冷卻時間。期間內仍可在該限制範圍內交易，時間結束後再放寬到下一階段的漲跌幅限制。
金管會為何要實施這項新措施？
為了因應近期國內外市場波動加劇，透過導入三階段漲跌幅機制與冷卻時間，強化交易面的風險控管，減少期貨市場過度反應，穩定交易市場。
新制度何時開始實施？
預計自今年7月6日起實施。