Bangkok--16 Apr--SET Thailand Futures Exchange PCL (TFEX) will provide up to 20% in trading fee reductions as incentives for its brokers to market SET50 Index Options. The incentives scheme will operate during May — October 2008. Derivatives brokers who trade 1,000 or more options contracts each month will be entitled to receive a reduction in trading fees of between 10% and 20%, TFEX Managing Director Kesara Manchusree said. “To be eligible for a 10% fee reduction, brokers must record monthly futures and options trading of 10,000 — 20,000 contracts. Those in the 20,001 — 40,000 range will receive a 15% reduction and brokers trading over 40,000 contracts will receive 20%. Turnover will not include trades resulting from brokers’ market-making,” Ms. Kesara added. In addition to brokers’ educational efforts, TFEX will host training and workshops for marketing representatives, analysts and institutional investors during Q2 — Q3 this year. With the cooperation of Options Industry Council (OIC), USA, experts from International Securities Exchange (ISE) will conduct a specialized course in options at end-May. In regard to derivatives trading in Q1/2008, average daily turnover was recorded at 7,627 contracts or THB 4,230 million. These were comprised of 7,313 SET50 Index Futures contracts worth THB 4,228 million, and 314 SET50 Index Options contracts worth THB 1.59 million. Total outstanding contracts at the end of the quarter were 18,033. The Q1/2008 daily average was a 219% increase over the 2,391 contracts in Q1/2007 and was a 46% rise when compared with the daily average of 5,219 contracts in 2007. Trading by investor group is similar to in 2007. Retail investors accounted for about 55%, while local institutions and foreign investors traded about 23% and 22% of total turnover respectively. At end-Q1/2008, there were 10,831 derivatives trading accounts, or a 14% increase on the 9,531 accounts at end-2007. The top five most active brokers in Q1/2008 are Trinity Polaris Futures, with 13.9% of total trading volume; KGI Securities (Thailand) with 11.5%, Kim Eng Securities (Thailand) with 10.9%, Phillip Securities (Thailand) with 10.8% and Phatra Securities with 6%. TFEX had a record turnover on March 27, 2008 of 15,963 contracts.