Published On: Sat, Aug 31st, 2013

Thai Bourse Lowers Minimum Volume for Block Trade

Kesara Manchusree TFEX Managing Director

Kesara Manchusree TFEX Managing Director

Thai bourse lowers minimum volume for block trade, effective 2nd September 2013 Bangkok,29th August The Thailand Futures Exchange PCL (TFEX), under The Stock Exchange of Thailand (SET) group, has decreased the minimum size required for block trade transaction of high notional-valued contracts, effective from 2nd September 2013.

TFEX Managing Director Kesara Manchusree said: “From September 2 onwards, minimum volume for block trade will be reduced to 25 contracts, down from 100 contracts, for block trades of 10-Baht gold futures, 50-Baht gold futures, and 20 stock futures with high notional value. Block trading of silver, oil, and sector futures will now also be allowed from that date with a minimum volume of 25 contracts.

This reduction of minimum volume of block trade will help investors in managing their portfolios more easily and effectively. The notional value of a block trade transaction of 25 contracts is approximately THB 5 million to 25 million. For example, a block trade of 25 contracts of 50-Baht gold futures will be approximately THB 25 million, instead of the current value at approximately THB100 million for 100 contracts.”

Block trading in TFEX is similar to big lot trading in SET. The current minimum volume and value of a big lot trading in SET is at least 1 million shares or at least THB 3 million. For stock futures, the 20 underlying stocks with high notional value which have their block trading minimum volume reduced to 25 contracts per trade are Advanced Info Service pcl (ADVANC), Airports of Thailand pcl (AOT), Banpu pcl (BANPU), Bangkok Bank pcl (BBL), Bangkok Dusit Medical Services pcl (BGH),Bumrungrad Hospital pcl (BH), Bangkok Life Assurance pcl (BLA), Total Access Communication pcl (DTAC), Shin Corporation pcl (INTUCH), Kasikorn Bank pcl(KBANK), Kiatnakin Bank pcl (KKP), PTT pcl (PTT), PTT Exploration and Production pcl (PTTEP), PTT Global Chemical pcl (PTTGC), Ratchaburi Electricity Generating Holding pcl (RATCH), Robinson Department Store pcl (ROBINS), Siam Commercial Bank pcl (SCB), Siam Cement pcl (SCC), Thaioil pcl (TOP), and Thai Union FrozenProducts pcl (TUF). While, the remaining 40 underlying stocks retain their existing minimum volume for block trade at 100 contracts per trade.

“Block trading has gained significant interest among investors, especially when they want to trade a large quantity of futures contracts or when the futures contracts has low liquidity. Investors can contact brokers who are members of TFEX to ask for more information about block trades,” Kesara concluded.

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