Bangkok--31 Jul--SET
Thai gold futures market makers can now trade futures contracts that have gold or gold exchange-traded funds (ETFs) as the underlying assets in foreign exchanges, each with the asset limit of USD5 million. The Thailand Futures Exchange (TFEX) also appointed T.C. Ausiris Futures Co., Ltd. to be a gold futures market maker, starting August 3, 2009.
“Bank of Thailand (BoT) has approved to allow TFEX gold futures market makers to trade futures contracts that have gold or gold ETFs as the underlying assets in foreign exchanges, provided that such overseas trades are through exchanges, not over-the-counter. Interested market makers can file for credit limit approval of USD5 million. Market makers can only make transaction overseas as long as they remain TFEX market makers. If a firm ceases to be a market maker, it must close its offshore positions and bring all assets back to Thailand. Market makers must also report transactions made in foreign exchanges to help regulate overall gold futures trading,” said TFEX managing director Kesara Manchusree.
This support from the government will help market makers operate effectively, increasing the liquidity of gold futures. TFEX aims at having not over eight gold futures market makers. At present, there are three other market makers, namely, Globlex Securities Co., Ltd., Trinity Securities Co., Ltd., and Thanachart Securities PCL. T.C. Ausiris Futures Co., Ltd. will be the latest market maker and start trading on August 3, 2009, making a total of 4 TFEX market markers.
Gold futures trading in Thailand has developed steadily, from its February 2, 2009 introduction until end-June2009, with a daily average trading volume of 620 contracts. Most trading volume is from retail investors, accounting for 80% of total trading volume, with 80% trading volume was made by existing brokers, while another 20% of trading volume was made by gold-related agents. Gold-related agents are just beginning operations, and we expect that their volume will grow consistently,” added Ms. Kesara.
T.C. Ausiris Futures Co., Ltd. (TCAF) is a joint-venture between Ausiris Co., Ltd. and Thailand Gold Retail Club. Ausiris Co., Ltd. is a subsidiary of House of Goldsmiths Group, which trades gold bars investment and provides consultation on gold investment, with strong experience and expertise in gold for over 70 years. T. C. Ausiris Co., Ltd. joined TFEX’s members as a gold-related agent on March 2, 2009. Please see more details at http://www.tcausiris.com
For more information about gold futures trading and market maker, please visit www.tfex.co.th.
For more information, please contact S-E-T Call Center 0 2229 2222
Press office, please contact Public Relations Unit, the Corporate Communications Dept.: Ladawan Kantawong Tel: 0-2229-2036 / Kanokwan Khemmalai Tel: 0-2229-2048 / Panitee Chatpolarak Tel: 0-2229-2792