TFEX Gears Up To Improve Products And Boost Liquidity For Its Upcoming 9th Anniversary

Kesara Manchusree, President, SET

Kesara Manchusree, President, SET

Thailand Futures Exchange PCL (TFEX), under the Stock Exchange of Thailand group, has continuously been developing its products, generating more liquidity to meet market demand as TFEX is progressing into its ninth year of operation. The exchange will also focus more on cooperation with foreign derivatives markets for joint-business expansion.

TFEX Managing Director Kesara Manchusree stated that TFEX has been made a mark since it started trading in 2006 with significant developments and strong growth. Started with only one product, the SET50 futures, and now currently trading nine products. Daily trading volume jumped 57 times to 68,017 contracts, while derivatives accounts rose 19 times to 87,693 accounts. TFEX’s world ranking last year was at 35th while 2 years ago TFEX was ranked at 45th, as ranked by Futures Industry Association (FIA) from a total of 84 derivatives markets worldwide.

This year, TFEX focuses on developing products and services to provide investors with more practical tools to manage their portfolio efficiently. In addition to the launch of mini SET50 futures on May 6, TFEX will also expand its trading hours in the afternoon sessions by opening trading 15 minutes earlier.

The exchange will adjust trading hours in the afternoon session by opening the market 15 minutes sooner, resulting the session to begin with pre-opening period from 13.45-14.15 hours (from the current pre-opening period of 14.00-14.30 hours). The afternoon closing time and night sessions of all products will remain unchanged. This will make it more convenient to investors to adjust their derivatives portfolio to match with the anticipated prices of the main stock market board, Kesara added.

“In the second half of 2014, TFEX will gear up to enhance expertise for its products, especially options, as the features will benefit investors greatly, enabling them to build investment strategy in various forms for all market conditions. Options are considered the most popular product among developed derivatives markets. As such, TFEX will arrange more seminars while adding more market makers for options to help with liquidity. In addition, TFEX will join hands with foreign derivatives markets in developing derivatives products and expanding information services. The recent MOU signing with Eurex Exchange,German derivatives bourse, could generate significant benefits to investors,”Kesara added.

Apart from the extension in trading hour, TFEX will launch mini SET50 futures on May 6. The new product mechanism will immensely benefit investors as the contract size has been reduced to be one-fifth (from THB 1000 to THB 200). Margins and exchange fees will also be reduced proportionally to one-fifth as well. Any open positions prior to the launch date will be automatically increased by five times (5 mini SET50 Index futures will be automatically converted from 1 SET50 Index futures).

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