Bangkok--27 Apr--Phillip Securities
Phillip Securities (Thailand) PLC is confident in its ability and expertise in handling electronic derivatives trading and believes to be the first and only securities company in Thailand to be able to handle transactions during the first day of operation of Thailand Futures Exchange on April 28 this year. Company executive reveals that futures trading via the Internet is the most popular method overseas. The futures market is becoming a new and attractive investment alternative for international investors.
Suchai Suthasthamkul, Managing Director of Phillip Securities (Thailand) PLC, disclosed that following the approval of membership by Thailand Futures Exchange PLC or TFEX to conduct futures trading scheduled to commence on April 28 this year, the company was deemed ready to handle transactions starting from the first day due to advanced preparation and system testing with TFEX since middle of 2005. ‘We have passed all the tests and we have qualified personnel to provide useful advice to investors,” he said.
“What we have that makes us more superior than other securities brokers is our system. The system we have is able to accommodate electronic transaction starting from the first day TFEX commences operation. It is not an overstatement to say that Phillip Securities (Thailand) is the only broker capable of delivering such service because we developed the system ourselves,” Suchai said.
He further explained the importance of futures trading via the Internet, saying Phillip Securities had expertise and long time experience in the futures market overseas. “Investors need to keep a close watch over the movement of pricing in order to respond to the market with purchasing and selling order. This is why they prefer using the Internet more than any other method. In other countries, futures transactions are made through the Internet more than any other method available,” he said.
“Since we have the ability to conduct online transactions in the futures market, we believe we can rise to the forefront of Thailand’s futures trading,” said Suchai, citing the case that the company had been the first broker to handle both stocks and mutual fund units transactions via the Internet through a system developed to enhance the convenience for investors using only a single set of name and password to gain access.
SET 50 Index Futures - the first product under TFEX offers 3 attractive aspects 1. new alternative for investment offering high risk at high return, where one can gain profit climbing and tumbling index; 2. risk counter for the stock market, when the stock index is one the way down but investors do not want to unload the stocks in the portfolio, they can simply sell their SET 50 Index Futures instead — with stock actually tumbling they can still gain and make up from futures trading; and 3. Taking advantages of price irregularity in the 2 markets, which is called arbitrage.
“The existence of the futures market makes Thailand’s capital market more attractive to international investors because it can reduce risk from market liquidity or pricing fluctuation affected by various factors. However, futures trading will take some time before smoothened, depending on the market liquidity, system efficiency and payment system,” he concluded.