Stock Exchange Of Thailand Confident Derivatives Market Can Commence Trading In Mid-2005

The Stock Exchange of Thailand (SET) President, Mr. Kittiratt Na-Ranong, revealed the SET will be setting up the Derivatives Market (Thailand) Public Company Limited as its subsidiary for the trading of derivatives. The SET is currently preparing for this endeavor, in terms of personnel, the trading system, and other work processes, to be ready in the middle of next year. This will allow the public and investors access to full-scale investment tools and efficient risk management.

“The trading system, clearing system, monitoring system, and risk management practices will be up to international standards so both domestic and foreign investors can be confident in the new derivatives market.

The SET is also focusing on training and preparing personnel for the new derivatives market. In April – May 2004, eighteen personnel who are in the main working team, information technology, market surveillance, education, clearing and settlement, as well as experts will be sent abroad to analyze the systems of other derivatives markets in EAOSEF (East Asian and Oceanian Stock Exchanges Federation). The information they gather and learn will then be applied to the establishment of the derivatives market in Thailand,” Mr. Kittiratt said.

The SET will begin educating related parties from the third quarter of this year onwards. It will launch an educational plan among institutional investors, the intermediaries, and investors to foster a better understanding about investment in derivatives, with in-depth and inexhaustible information distributed through seminars and the media, such as the print media, television, radio, websites and e-learning.