Bangkok--6 Jan--SET
Trading volume on Thailand Futures Exchange PCL (TFEX) totaled 2.15 million contracts in 2008, a 69% rise over 2007. In 2009, TFEX expects its daily average trading volume to reach 10,900 contracts, and will launch gold futures including additional single stock futures, as well as review the SET50 Index Options’ specifications to decrease obstacles to trading.
“The trading level in 2008 is at a satisfying level, as the average daily trade was at 8,837 contracts, up from 5,219 contracts per day in 2007,” Ms. Kesara Manchusree, TFEX Managing Director revealed. “This daily average in 2008 comprised 8,498 contracts of SET50 Index Futures, 185 contracts of SET50 Index Options, and 154 contracts of Stock Futures. Average daily total turnover in 2008 totaled THB3,810 million (USD108.6 million), a rise of 32% from THB2,883 million in 2007, accounting for 24% of total trading turnover on The Stock Exchange of Thailand. Total outstanding volume as of December 31, 2008 was at 22,747 contracts.
“The global financial crisis last year emphasized investors the importance of using derivatives as a risk management tool. The highest daily trade of derivatives reached 21,474 contracts on October 29, 2008, while there were a total of 15,893 active derivatives trading accounts, an increase of 67% from 9,531 in 2007. Retail investors were responsible for 56.57% of 2008 trading volume, institutional investors for 26.38% and foreign investors for 17.05%. Derivative trading through the Internet was 14.82% of total volume, a rise from 11.31% in 2007,” said Ms. Kesara.
Currently, TFEX has 36 members and is planning to accept 4 more members for gold futures trading. As of end-2008, Kim Eng Securities (Thailand) had the largest retail investor base, followed by Trinity Securities Co., Ltd., Phillip Securities (Thailand) PCL, KGI Securities (Thailand) PCL, and Seamico Securities PCL.
“TFEX launched 3 Single Stock Futures of ADVANC, PTT and PTTEP on November 24, 2008 together with a change in margin calculation to be risk-based portfolio margin to help investors trade derivatives at a lower cost,” Ms. Kesara added.
“In 2009, TFEX will focus on developing new products. Gold futures will be introduced with a contract size of 50 baht gold on February 2 to allow investors to better manage risk and profit from gold price volatility. TFEX will review the contract specifications of SET50 Index Options and help support trading facilities to be in accordance with the market’s needs. TFEX will also increase market liquidity and promote educational programs e.g. via trading simulations so investors can learn about options trading, which will encourage them to use options in their portfolio management. Additionally, TFEX plans to launch additional Single Stock Futures of new underlying stock with large capitalization, high liquidity and popularity. That would help increase our average daily trading volume to reach 10,900 contracts as plan”