Thai Futures Exchange to Launch Three Interest Rate Futures
Thailand Futures Exchange PCL (TFEX) will launch three interest rate futures within this year, starting with bond futures on October 18, followed by two short-term interest rate futures in late November.
“TFEX’s board of directors approved the launching of 5-year government bond futures while two short-term interest rate futures, i.e., 6-month THBFIX futures and 3-month BIBOR futures, shall be launched shortly within this year. The 3-month BIBOR futures will be a new product that is in accordance with the Bank of Thailand’s plan to develop the Thai money market and be a tool for short-term interest rate risk management for those with loans or transaction costs related to BIBOR,” revealed TFEX Managing Director Kesara Manchusree.
5-year government bond futures and 6-month THBFIX futures have been approved by the Securities and Exchange Commission, while the 3-month BIBOR futures is awaiting approval. TFEX and the Thailand Clearing House Co., Ltd. will test the trading and clearing system with members this month.
“Aside from trading three interest rate futures, TFEX will allow block trade at the end of this year, which is similar to put-through trading on the SET, to facilitate institutional investors that trade large volume of futures. TFEX has drafted related regulations and submitted for SEC approval,” concluded Ms. Kesara.