Bangkok--3 Sep--SET The Stock Exchange of Thailand (SET) today explained the similarity in conditions applying to equity exchange-traded funds (ETF’s) and traditional stocks. For example, because they are also listed securities, trading orders can be placed as a basket order. Equity ETF’s are subject to a 30% ceiling and floor price derived from the previous day’s closing price, short-selling, and the same clearing and settlement practices as ordinary stock. An ETF is a new product offered by the Thai market which provides an alternative investment opportunity, can be traded using any broker and can be quoted on a real-time basis. Equity ETF’s will have market-makers to assure liquidity. SET has ensured that the rules relating to equity ETF are similar to those applying to stocks, SET President Ms. Patareeya Benjapolchai said. “The product strengthens our international links, because Thai equity ETF’s can be listed overseas and foreign ones listed here,” Ms. Patareeya said. In other countries, financial institutions, such as commercial banks, asset management companies and the securities companies, can initiate listings of this product, whereas only asset management companies can list mutual funds. “I agree that equity ETF should be promoted and that they will be attractive to local and foreign investors. It adds further variety and choice to the Thai market,” Association of Asset Management Companies (AIMC) President Mr. Maris Tarab stated. The product will suit retail investors, as it diversifies risk and is benchmarked to an index. It is sheltered from the fluctuations associated with an individual stock,” Thai Investors’ Association President Mr. Wichai Poolvoraluk said. “In addition to the previously-mentioned advantages of ETFs, they can be linked to both equity and derivative indices. These advantages will raise the profile of SET50 Index Futures and enhance liquidity in the equity and derivatives market, thus benefiting the Thai capital market overall,” Securities Analysts Association Secretary-General Mr. Sombat Narawutthichai added. Globally, ETF-managed assets have grown at a compound annual rate of 70% - almost doubling annually since 1993. Most Asian stock markets, such as Korea, Taiwan, Singapore, Malaysia and China, trade the product. For more information, including the research paper, ETF: Opportunities and Threats in the Thai Market and news on developments in local and global capital markets, visit SET’s website at www.set.or.th/setresearch/setresearch.html For more information, please contact the Corporate Communications Dept.: Ladawan Kantawong Tel: 0-2229-2036 / Sarinluck Jitkawong Tel: 0-2229-2037 / Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797