Cathay Futures

Overview

Cathay Futures is a financial institution operating under the regulatory oversight of the Taipei Exchange (TPEx) in Taiwan, providing access to various international exchanges. They offer a wide range of trading products, and margin requirements vary depending on the specific trading product and exchange. Opening an account with Cathay Futures involves identity verification, document submission, application form completion, and signing of required agreements. They also provide customer support services via email and phone, catering to both individual and corporate clients.

Regulation

Cathay Futures is a financial institution that operates under the regulatory oversight of the Taipei Exchange (TPEx). TPEx, also known as the Taipei Exchange Corporation, is a prominent self-regulatory organization in Taiwan responsible for supervising and monitoring various financial activities and market participants within its jurisdiction. As a regulatory authority, TPEx plays a vital role in ensuring the integrity and stability of the financial markets it oversees. Cathay Futures' adherence to TPEx regulations underscores its commitment to maintaining transparency, compliance, and ethical standards in its operations, which ultimately helps protect the interests of investors and contributes to the overall stability of the financial sector in Taiwan.

Pros and Cons

Cathay Futures, operating under the regulatory oversight of the Taipei Exchange (TPEx), offers a range of advantages and challenges. On the positive side, their commitment to regulatory compliance ensures transparency and ethical standards, providing investor protection. Access to diverse international exchanges allows for a wide array of trading opportunities, complemented by detailed margin information that aids risk management. Additionally, a structured account opening process facilitates user onboarding, and dedicated customer support contacts are available. However, the regulatory oversight can introduce compliance complexities and restrictions. Trading across multiple exchanges may be intricate, particularly for newcomers. Inadequate margin management poses risks, and the document requirements for account setup can be time-consuming. Lastly, the availability and responsiveness of customer support may vary, affecting the ease of obtaining

Trading Products

Cathay Futures offers trading products for various exchanges around the world, including:

1. Taiwan Futures Exchange (TAIFEX): TAIFEX is Taiwan's futures and options exchange, where a variety of financial and commodity derivatives are traded.

2. Hong Kong Exchanges and Clearing Limited (HKEX): HKEX is the primary stock and derivatives exchange in Hong Kong, offering a wide range of financial products, including equities and derivatives.

3. Osaka Securities Exchange (OSE): OSE is a Japanese exchange that primarily focuses on equity derivatives trading, including stock options and futures.

4. Tokyo Commodity Exchange (TOCOM): TOCOM is the largest global marketplace for trading platinum and rubber futures, serving as Japan's primary comprehensive commodity exchange.

5. Singapore Exchange Limited (SGX): SGX is Singapore's leading stock exchange, offering a diverse range of financial products and derivatives, including equity and commodity derivatives.

6. Eurex Deutschland (Eurex): Eurex is a major European derivatives exchange known for its euro-denominated derivative instruments, including futures and options.

7. International Petroleum Exchange (IPE): IPE, located in London, specializes in the trading of petroleum and energy-related derivatives, including crude oil and natural gas contracts.

8. London International Financial Futures and Options Exchange (LIFFE): LIFFE, based in London, is a prominent exchange for trading financial futures and options contracts, including interest rates and equity index derivatives.

9. Intercontinental Exchange (ICE): ICE is a global exchange operator that offers a wide range of products, including energy, agricultural, and financial derivatives, as well as equity and commodity markets.

10. Chicago Board of Trade (CBOT): CBOT is one of the oldest futures and options exchanges in the United States, specializing in agricultural and financial derivatives.

11. Chicago Mercantile Exchange (CME): CME is a major global derivatives exchange, offering a wide variety of futures and options contracts on commodities, interest rates, and equity indices.

12. New York Stock Exchange (NYSE): NYSE is one of the largest and most prestigious stock exchanges in the world, where equities and exchange-traded funds (ETFs) are traded.

13. New York Mercantile Exchange (NYMEX): NYMEX is a critical exchange for the trading of energy and metal commodities futures and options, including oil, natural gas, and precious metals.

Cathay Futures provides access to these international exchanges, allowing traders to engage in a wide range of financial and commodity derivative products from different regions of the world.

Margin

TAIFEX (Taiwan Futures Exchange):

TAIFEX offers a wide range of futures contracts, including those based on the Taiwan Stock Index (FITX), Electronic Sector Index (FITE), Financial Insurance Sector Index (FITF), and various other indices and commodities. The original margin requirements for these contracts vary, with FITX having an original margin of NT$ 167,000 and FITE at NT$ 206,000, among others.

CBOT (Chicago Board of Trade):

CBOT provides margin requirements for various futures contracts, including those for long-term and mid-term US government bonds, stock indices like the Dow Jones, agricultural commodities such as wheat, soybeans, and oats, as well as other products like 30-day federal funds and oats. The margin requirements range from 275.0 to 7040.0 depending on the product.

CME (Chicago Mercantile Exchange):

CME lists margin requirements for several currency futures contracts, including the Euro, Japanese Yen, Swiss Franc, British Pound, Australian Dollar, and others. Additionally, it includes equity index futures like the Mini-SP 500 and commodity futures such as crude oil, natural gas, and metals. These margin requirements help traders assess the capital they need for positions in these markets.

ICE.US (Intercontinental Exchange - United States):

ICE.US provides margin requirements for various commodities, including coffee, sugar, cocoa, cotton, and the US Dollar Index. Additionally, it outlines requirements for equity index futures like the NYSE FANG Index and the Morgan Emerging Markets Index. Understanding these margin levels is vital for traders interested in these markets.

ICE.UK (Intercontinental Exchange - United Kingdom):

ICE.UK specifies margin requirements for Brent Crude Oil and UK government bonds. These requirements are critical for traders looking to participate in the energy and fixed-income markets.

EUREX (European Exchange):

EUREX presents margin requirements for a diverse set of products, including German DAX index futures, Eurozone government bonds, European stock indices, and various other financial instruments. Traders operating in European markets should pay close attention to these margin requirements.

HKFE (Hong Kong Futures Exchange):

HKFE provides margin requirements for Hong Kong-based products, including Hang Seng Index (HSI) futures, Hang Seng Tech Index (HTI) futures, and other equity index futures. Understanding these margin levels is essential for traders looking to engage in Hong Kong's financial markets.

SGX (Singapore Exchange):

SGX lists margin requirements for products such as the Nikkei Index, FTSE Taiwan Index, FTSE China A50 Index, and more. These margin requirements are crucial for traders interested in Asian markets.

OSE (Osaka Securities Exchange):

OSE specifies margin requirements for Japanese equity index futures and Japanese government bond futures, including the Nikkei 225, TOPIX, and JGB contracts. Traders involved in Japanese markets should be aware of these margin levels.

TOCOM (Tokyo Commodity Exchange):

TOCOM outlines margin requirements for various commodities, including gold, silver, platinum, palladium, rubber, and agricultural products like soybeans and corn. These requirements are significant for traders active in Japan's commodity markets.

In summary, margin requirements play a vital role in risk management for traders across different exchanges and trading products. Traders should carefully consider these requirements when formulating their trading strategies and ensure they have adequate funds to cover potential losses and maintain compliance with exchange regulations.

How to open an account？

1. Identity Verification:

To open an account, the first step is to undergo identity verification. You will need to provide your personal information, including your full name, date of birth, contact details, and nationality. This information is used to confirm your identity against official records.

1. Document Submission:

Next, you will be required to submit specific documents as part of the application process. These documents typically include:

• Proof of Identity: A valid government-issued ID card, passport, or driver's license to confirm your identity.

• Proof of Address: Documents like utility bills, bank statements, or rental agreements to verify your residential address.

• Additional Documentation for Legal Entities: If you are representing a corporation or legal entity, relevant business documents such as business registration and articles of incorporation may be necessary.

1. Fill Out Application Forms:

Complete the application forms provided by the financial institution. These forms will ask for information related to your financial objectives, investment experience, risk tolerance, and other essential details. If you're opening an account on behalf of a legal entity, you may need to provide additional information about the business.

1. Sign Agreements:

Review and sign the required agreements, including terms and conditions, client agreements, and any other legal documents associated with your account. Ensure you thoroughly understand the terms and obligations outlined in these agreements before signing.

Following these four steps will allow you to initiate the account opening process. Once your application is reviewed and approved, you can proceed with funding your account and begin your investment or trading activities as per your financial goals. Please note that specific procedures and document requirements may vary by financial institution and location, so it's advisable to refer to the institution's official guidelines for precise instructions.

Deposit & Withdrawal

The deposit and withdrawal process for your account involves several important details and steps.

Deposit Process:

1. Deposit Timing: Deposits can be made during the day, specifically by 16:30.

2. Bank Account Details: When making a deposit for margin requirements, you should transfer funds to the following bank account:

• Receiving Bank: Cathay United Bank, Xinyi Branch

• Currency: New Taiwan Dollar (NTD) or Foreign Currency

• Account Number: 9257 + Your Seven-digit Futures Account Number

• Currency: New Taiwan Dollar (NTD)

• Account Number: 98743

• Receiving Bank: Cathay United Bank, Xinyi Branch

• Currency: New Taiwan Dollar (NTD) or Foreign Currency

• Account Number: 9398 + Your Seven-digit Futures Account Number

1. For Foreign Futures Trading:

2. For Domestic Futures Trading (Taiwan) with China Trust Bank:

3. For Domestic Futures Trading (Taiwan):

3. Important Note: Ensure you include your seven-digit futures account number along with the bank details to correctly identify your account. For example, if your futures trading account number is 0106573, include it in your transfer details as 93980106573 for domestic futures trading (NTD) or 92570106573 for foreign futures trading.

Withdrawal Process:

1. Withdrawal Timing: Withdrawals are processed in batches during the day:

• First Batch Application: From the previous day at 14:01 to the current day at 08:00.

• Second Batch Application: From the current day at 08:01 to 10:00.

• Third Batch Application: From the current day at 10:01 to 14:00.

1. Withdrawal Crediting Time: The crediting time for withdrawals varies depending on the currency:

• For New Taiwan Dollar (NTD) Withdrawals: The first batch is credited at around 09:30, the second batch at around 12:00, and the third batch at around 15:30.

• For U.S. Dollar (USD) Withdrawals: The first batch is credited at around 10:00, the second batch at around 12:30, and the third batch at around 16:00.

1. Domestic and International Margin Transfers: If you are transferring margin between domestic and international futures trading accounts, you can apply for same-day processing before 16:30. However, if you apply after 16:30, international futures funds will be credited immediately, while domestic futures funds will be processed the next day.

Withdrawal Application Methods:

• Written Application: Fill out a withdrawal request form, including your account details and the required amount. Ensure you include your account's original seal or stamp.

• Phone Application: Call the withdrawal hotline at (02) 23269858 for assistance from a dedicated representative.

• Online Application: There may be online withdrawal options available for your account.

Foreign Currency Exchange:

• For general currency exchange requests made between 08:00 and 10:00, processing typically occurs on the same day. Requests received after 10:00 are processed on the next business day.

• Routine currency exchange for accounts with negative balances is conducted on predefined days, usually after reconciling customer account balances on Wednesdays.

• For clients participating in routine currency exchange, if you have urgent withdrawal needs, it is advisable to contact the company by phone.

Withdrawal Considerations:

• Withdrawals in U.S. dollars are generally credited on the same day, while other currencies may take additional time.

• For large foreign currency withdrawals, it's recommended to contact the company in advance for better fund allocation.

• If your bank account for withdrawal is not the same as the company's margin receiving bank, you may need to bear any interbank transfer fees.

• The exact timing of funds being credited to your account may vary, as it depends on the internal processes and bank operations.

Please note that these instructions are based on the information provided and may be subject to updates or changes by the financial institution. Always consult the institution's official guidelines for the most accurate and up-to-date information.

Customer Support

Customer Support Contact Information:

• Corporate Department Email: You can reach the Corporate Department by sending an email to inst@cathayfut.com.tw. This email address is likely suitable for inquiries related to corporate or institutional matters.

Individual Contact:

• Name: 鄭庭澤 (Zheng Tingze)

• Phone Number: You can contact Mr. 鄭庭澤 at (02) 2326-9895.

• Email Address: For written communication, you can email him at ky12310@cathayfut.com.tw.

Customer Support Services:

Cathay Futures seems to offer customer support services tailored to both corporate clients and individual clients. Mr. 鄭庭澤's contact information may be particularly useful for individual clients looking for assistance or information related to their accounts or trading activities.

For more detailed or specific inquiries, it's recommended to reach out directly to the provided contact information. Please note that the availability and responsiveness of customer support may vary, so consider the office hours and response times indicated by Cathay Futures when contacting them for assistance or inquiries.

Summary

Cathay Futures is a financial institution operating under the regulatory oversight of the Taipei Exchange (TPEx) in Taiwan. TPEx plays a crucial role in supervising and ensuring the integrity of financial markets in its jurisdiction. Cathay Futures offers a wide range of trading products, providing access to international exchanges, including TAIFEX, HKEX, CME, NYSE, and more. They also provide detailed information about margin requirements for various trading products, helping traders manage risk effectively. Opening an account involves identity verification, document submission, application form completion, and agreement signing. Deposits and withdrawals are processed with specific timings and bank account details provided. Customer support is available via email and phone, with individual contact information provided. This overview provides a comprehensive understanding of Cathay Futures' operations, regulatory compliance, and services.

FAQs

Q1: How can I open an account with Cathay Futures？

A1: To open an account, you'll need to undergo identity verification, submit necessary documents, fill out application forms, and sign required agreements. Specific instructions are available on Cathay Futures' official website.

Q2: What trading products can I access through Cathay Futures？

A2: Cathay Futures offers access to various international exchanges, including TAIFEX, HKEX, CME, NYSE, and more, enabling trading in a wide range of financial and commodity derivatives.

Q3: What are the margin requirements for trading with Cathay Futures？

A3: Margin requirements vary depending on the trading product and exchange. Detailed margin information is provided to help traders assess capital needs for their positions.

Q4: How can I deposit funds into my Cathay Futures account？

A4: You can deposit funds by transferring them to the designated bank accounts provided on Cathay Futures' website, ensuring you include your seven-digit futures account number for proper identification.

Q5: What is the customer support contact for individual clients？

A5: Individual clients can contact 鄭庭澤 (Zheng Tingze) at (02) 2326-9895 or via email at ky12310@cathayfut.com.tw for assistance with their accounts or trading inquiries.