House of the Year, Taiwan: Cathay United Bank

Tarf alternatives drive Cathay United Bank to Taiwan house award

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Taiwan's derivatives sector saw major changes in the past 12 months, with regulators rolling out stringent rules governing banks' sales of sophisticated derivatives in response to corporates' expiring losses on target redemption forwards (Tarfs) – thereby increasing costs at a time when margins are also under pressure.

Despite this tough market environment, Cathay United Bank grew its derivatives business by 53.8% compared with the previous 12 months. Its quick response to the regulatory changes