A study of strategy analysis for futures commission merchants in Taiwan

• Main Authors: Chiang, Yu-Fei, 江俞飛
• Other Authors: Kao, Jen-Lung
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/yat9r6

碩士 === 輔仁大學 === 企業管理學系管理學碩士在職專班 === 100 === Brokerage is the first business coming into shape in Taiwan’s futures industry, which is also considered as the most important business by futures companies in Taiwan. Taiwan Futures Exchange has been making efforts in developing new tradable products so as to meet more investors’ requirement and provide more opportunities of hedging and arbitraging to the general investing public, which might be beneficial to the expansion of futures brokerage business. As an observation, the main participants in the futures market are incorporated proprietary units and individuals. The increasing market share contributed by individuals over the recent years is also related to the development of the futures brokerage business. On the other hand, futures companies are facing a bitterly competitive environment in which they cut off the commission prices as low as possible to appeal to more new potential customers while the customers have been accumulated their skills of negotiating the commission price as low as the futures company may offer. Now that a severe competition exists in the futures brokerage market, how to promote a futures company’s profit-making capacity and diminish their daily operation risks would depend on how they choose their competition strategies. This research is carried out by practical exploration of individual cases of futures companies and stated in descriptive methodology, which is meant for analyzing the competition advantages and disadvantages of indigenous futures companies as well as their adoptable strategies. It is also conducted from the futures industry as a whole and adopts 5-forces analytical methodology of Porter competition strategy and SWOT analytical model to become a systematical research work. Upon the accomplishment of this research, three conclusions are made towards Futures Brokerage Business as below: 1. The business competition has been fierce and it will be too in the future. 2. High volatility in the market will benefit the expansion of futures brokerage business to some degree. 3. Risk-Management plays a critical role in this business field. UIn addition, here comes three suggestions to FCMs in Taiwan 4. To acquire more sales channels by closely working with their business groups. 5. To take advantage of the differentiation of customer service provided. 6. To put much more emphasis on the risk management of product liquidation and customer credit. This information is not only for the reference of indigenous FCMs and related enterprises in making their business policies, but also serving as the basis for further research into this relevant topic and hence contributing to the development of the futures industry of Taiwan.