Thai SEC strives forward AFET- TFEX integration

Vorapol Socatiyanurak, Thailand SEC Secretary-General -

Vorapol Socatiyanurak, Thailand SEC Secretary-General –

The SEC has moved forward the integration of the Agricultural Futures Exchange of Thailand (AFET) and the Thailand Futures Exchange (TFEX) in accordance with the Cabinet resolution on December 30, 2014, along with the transfer of work and personnel from the Office of the Agricultural Futures Trading Commission (AFTC).

Vorapol Socatiyanurak, SEC Secretary-General said, “The SEC Board has already approved guidelines for accommodating the integration of the two futures markets, AFET and TFEX, which will generate further benefits to the country in terms of economy of scale. The integration will also offer a one-stop trading venue for investors, and thus enhance our futures market’s competitive edge in the international arena. In this regard, the SEC has collaborated with relevant parties to foster smooth transition by taking into account three key aspects: (1) goods and agricultural futures exchange, (2) business operators, and (3) human resources.

(1) On goods and agricultural futures exchange, the SEC will include agricultural commodities under the Derivatives Act B.E. 2546 (2003) and allow TFEX to issue and providing trading venue for agricultural commodities futures. Trading of agricultural commodities futures on TFEX and AFET will be concurrently in the initial stage of transition to provide trading continuity without causing adverse impact to investors;

(2) For existing agricultural futures business operators, the SEC will issue regulations to allow them to apply for a license under the Derivatives Act. The regulations will be in line with those currently applicable to derivative business operators. However, some relaxations will be granted for certain period of time; for instance, applicant’s qualifications, paid-up registered capital and capital requirement. This aims to facilitate existing agricultural futures business operators to continually provide services on agricultural commodities futures traded on TFEX. Meanwhile, investor protection will not be compromised and adverse impact on the stability of the system will also be prevented; and

(3) On human resources, AFTC personnel are welcomed to work at the SEC in positions based on their knowledge, skills and experience. Salary will not be less than the amount previously obtained while welfare will be similar to that of SEC personnel working in the equivalent positions.”

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