Thai Bourse Readies New SET50 Options for Oct Launch

Thailand Futures Exchange (TFEX), under The Stock Exchange of Thailand group is ready to start its modified SET50 Options on September 27, 2012 as it will not create the new series, expiring in September 2013 to reflect the upcoming changes.

“TFEX will introduce the new versions of SET50 Options on October 29, which two contract months will be added, but the two farthest quarterly months will be removed. Under the new expiration cycles, there will be three nearest consecutive monthly contracts, and one quarterly contract for the Options contract. In order to implement this new rule, on September 27, 2012 TFEX will not create the Options series September 2013 (U13). Thus during September 27 – October 29 there will be 3 contract months comprising of December 2012, March 2013, and June 2013, Kesara Manchusree, Managing Director of TFEX, said.

On October 29, 2 new contracts which are November 2012 (X12) and January 2013 (F13) will be added together with the existing 3 contracts; December 2012, March 2013 and June 2013. The existing June 2013 (M13) originally-issued prior the new rule implementing will be available until its maturity.

“In addition, strike price interval of SET50 Options will be increased to 25 points, so that SET50 Options will have 2 in-the-money, 1-at-the-money, and 2 out-of-money, or in series of 2:1:2 replacing the previous rule which had 11 levels, with each level being 10 points apart. This revision will facilitate investors to trade SET50 Options and also enhance the trading liquidity.” said Ms. Kesara.

Furthermore, the modified SET50 Futures and the new product, Sector Futures will be introduced concurrently with Options contract on October 29.