Published On: Fri, Jan 8th, 2010

Thailand Futures Exchange Expects to Grow 20% in 2010

Thailand Futures Exchange PCL (TFEX) in 2009 recorded a total trading volume of 3.075 million contracts, or a daily average of 12,771 contracts, an increase of over 44% from 2008. TFEX expects that in 2010, it can grow 20%, by focusing on increasing liquidity of existing products and encouraging the launch of interest rate futures within this year.

TFEX’s operating performance in 2009 was satisfying, even though 2009 caused investors much concern from the global economic crisis. There was growth in both trading volume and numbers of investors, resulting from launching gold futures, the acceptance of new gold-related agents, and activities to promote trading activities, e.g., marketing campaigns, and providing education to related parties throughout the year, revealed TFEX’ s Managing Director Kesara Manchusree.

TFEX’s trading value in 2009 totaled THB1.33 trillion (approx. USD39.99 billion) or a daily average of THB5.59 billion (approx. USD167.54 million) In terms of trading volume, total trading volume during the year reached 3.075 million contracts, or a daily average of 12,771 contracts, up over 44% from 2008, where a daily average trading volume was at 8,837 contracts. In terms of number of contracts, 21% of trading was through the Internet. The most popular product was SET50 Index Futures, which accounted for 84% of total
trading volume. As of December 30, 2009, TFEX’s open interest was at 28,281 contracts, with 29,647 derivatives trading accounts, or a year-on-year rise of 86.5%.

In 2009, TFEX launched two new products: gold futures in February and 11 single stock futures in June. Both products received great attention from investors. Gold futures’ daily average trading volume reached 1,397 contracts or 10% of TFEX’s total trading volume, while single stock futures dailyaverage trading volume reached 600 contracts, or triple the volume of 2008.

Moreover, TFEX accepted five more gold-related agents to support gold futures trading and
increase trading channels for investors.

The TFEX brokerage firms with the highest trading volume in 2009, for a combined 43.05% of total trading volume, were Kim Eng Securities (Thailand) PCL at 10.75%, Phillip Securities (Thailand) PCL at 9.8%, KGI Securities (Thailand) PCL at 7.78%, Trinity Securities Co., Ltd. at 7.46%, and Globlex Securities Co., Ltd. at 7.26%, respectively.

In 2010, TFEX will emphasize on increasing product liquidity by holding activities to promote trading all year round, encouraging rules amendment to facilitate both domestic and international institutional investors to
conveniently trade on TFEX, providing interest rate futures as a risk management tool for institutional bond investors, and studying the feasibility of providing commodity products, e.g., oil.

“TFEX believes that supporting liquidity of existing products and providing new products will help promote TFEX’s growth. We expect that in 2010, TFEX trading volume should grow about 15-20%, with a daily average trading value of15,000 contracts,” concluded Ms. Kesara.

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