TFEX’s Derivatives Volume Up 88 Pct In The First Nine Months

Thailand Futures Exchange PCL (TFEX), under The Stock Exchange of Thailand group, revealed that derivatives trading volume surged 88 percent to 127,536 contracts per day from a year earlier, adding the total trading volume to 23,339,171 contracts with mini SET50 futures and stock futures still being the most popular products.

In the first nine months of this year, TFEX’s most transaction mainly came from stock futures (56.6 percent), SET50 futures (37.5 percent), and gold futures (4.8 percent), while the open interest (as of end-September) soared by 301 percent to 1,367,106 contracts with number of investor accounts rising to
96,992. The trading proportion of retail investors accounted for 56 percent, institutional investors 36 percent, while foreign investors represented 8 percent. On September 25, the total trading volume of TFEX hit an all-time high of 524,478 contracts.

Stock futures was TFEX’s most actively traded product with daily average trading volume of 72,200 contracts, up 110 percent from a year earlier. The increase was in line with the stock market’s growth. The top five most actively traded derivatives were Bangkok Land pcl (BLAND), True Corporation pcl (TRUE), Jasmine International pcl (JAS), TMB pcl (TMB) and Italian-Thai Development pcl (ITD). The top three brokers with highest the stock futures trading volume were KGI Securities (Thailand) pcl, Phatra Securities pcl and KT ZMICO Securities Co., Ltd. Currently, there are 60 stock futures available.

Meanwhile, SET50 futures’ trading volume totaled 47,850 contracts per day, doubling a year earlier, due mainly to the recent adjustment of its size in May, making the product one fifth smaller than its original size (mini SET50 futures). As such investors have more flexibility to trade and manage their portfolios efficiently with more liquidity and it could attract new investors to trade the products. The top three brokers with highest SET50 futures trading volume were KGI Securities (Thailand) pcl, Credit Suisse Securities (Thailand) Limited and Maybank Kim Eng Securities (Thailand) pcl.

TFEX has continuously boosted the trading liquidity of SET50 options. In the latest attempt, the exchange has collaborated with KGI Securities and Ausiris Futures Co., Ltd. to operate continuous quote of the options trading since September. In addition, TFEX’s added Land & Houses Securities pcl (LHS) as a member, enabling it to operate futures brokerage for TFEX from the end of September onwards.