The first regional product put together by the Hong Kong Futures Exchange - futures and options linked to a Taiwan index created by the exchange - is set to be launched on May 26.
Futures exchange chief executive Randy Gilmore said the new product was the first step in the exchange's plan to transform itself from a local exchange into a regional derivatives trading centre.
'We will launch a wide range of Asian regional products, including index futures, currency futures and interest rate contracts,' he said.
'In recent years Taiwan has emerged as one of the largest and most active equity markets in the world.
'The growth of the Taiwan stock market has generated a need for hedging tools for market participants to transfer their risks.' Last April two investment banks - Peregrine Derivatives and Union Bank of Switzerland - were threatened with legal action for launching derivative warrants on the Taiwan weighted index.
Taiwan's financial regulators warned that investment banks must seek approval before using the Taiwan index for their warrants.
Mr Gilmore said the futures exchange was launching its product based on its own Taiwan index and not on the actual Taiwan weighted index, which yesterday closed above 9,000 points for the first time in five months.
