Bangkok--22 Oct--SET
Thailand Futures Exchange PCL (TFEX) creates understanding among its member companies of its plans in 2010 to prepare for future cooperation. TFEX will introduce mini-gold futures in February followed by interest rate futures in H2/2010.
In addition, TFEX will study feasibilities of extending trading hours, expanding its investor base, and lowering transaction
cost to boost competitiveness. Due to these improvements, TFEX will expand its daily average trading volume to 15,078 contracts, and double this figure within three years.
“After receiving an approval from its Board of Directors on the plans for 2010, TFEX conducted the meeting with its member companies to create understanding about its plans and to notify its members of TFEX’s policies in order to prepare for the future operations and cooperation on derivative market’s development,” revealed TFEX Managing Director Kesara Manchusree.
For products, TFEX will enhance liquidity by supporting its member companies in expanding their proprietary trading, including increasing the number of market makers, and possibly extending derivative trading hours to increase liquidity of products based on global commodities, e.g., gold. For the new products, TFEX will focus on developing strong potential products that are needed in the market.
“On February 8, 2010 TFEX will launch mini-gold futures with the contract size of THB10 gold, the product that investors have been familiar with for almost a year. This year’s fluctuating cost of gold has made gold futures continually receive more attention from investors. Moreover, investors want to trade contracts with a smaller size to more easily trade and manage their portfolios.
Moreover, TFEX will develop interest rate futures as effective financial tools for institutional investors to manage risk and adjust their bond investments. Such firms include commercial banks, insurance companies, and asset management companies,” added Ms. Kesara.
To expand its investor base, TFEX will continue to cooperate with its members in holding activities that promote knowledge and understanding. For institutional investors, TFEX will relax rules to create more flexibility and be more in line with international standards on issues such as access to trade in TFEX, accepting foreign currency as collateral, e.g., US dollars, Euros, or yen to reduce risk from currency rate exchange. TFEX will discuss these matters with regulators, e.g., the Securities and Exchange Commission, Bank of Thailand, and the Ministry of Finance.
“To lower transaction costs, TFEX is studying on improving transaction costs to be competitive with other futures exchanges,” she concluded.
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