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Thailand Futures Exchange PCL (TFEX), Rubber Authority of Thailand (RAOT), The Thai Rubber Association (TRA) and TFEX’s members, today have announced their collaboration in developing rubber futures and encouraging investors and entrepreneurs to utilize the product more effectively. They will focus on providing knowledge, boosting liquidity while also minimizing trade obstacles.
In addition, three rubber entrepreneurs and five TFEX members have signed a memorandum of understanding (MoU) to facilitate RSS3D Futures trading and physical deliveryprocess. This is a continuing effort to develop the rubber futures after it was launched in 2016.
TFEX Managing Director Rinjai Chakornpipat stated that this collaboration aims to promote entrepreneurs and investors to utilize the rubber futures products for managing risks and investment portfolio, boost trading liquidity, and push RSS3D Futures to be a reference price for rubber trading. This is the starting point in supporting the growth of rubber futures further and create benefits to all related parties.
RAOT Governor Titus Suksaard said that RAOT, as a central organization for the administration and management of rubber in Thailand, has developed rubber market in many aspects and cooperated with entrepreneurs to set up a fund for spot and futures markets to ensure the price stability of rubber. RAOT has jointly formed Regional Rubber Market (RRM) with Malaysia and Indonesia, while also conducting a feasibility study of introducing US dollar-denominated rubber trading, with an aim to push Thailand’s rubber price as an international price reference.
TRA Secretary General Bundit Kerdvongbundit said that the cooperation between rubber entrepreneurs and TFEX members under the MoU aimed to build confidence to investors for trading rubber futures in TFEX, easing physical rubber delivery concerns and drawing interested investors to learn and utilize more on rubber futures.
Suntree Kiattipongthaworn, Senior Executive Vice President of Derivatives, KT Zmico Securities Co., Ltd. – one of TFEX members that signed the MoU – said that after TFEX has launched RSS3D Futures, some investors are still not familiar and concerned about the delivery process of physical rubber. Thus, TFEX and its members have been focusing on providing knowledge about the product and benefits to investors and entrepreneurs. We have been offering researches and trading tools to facilitate investors, and seeking method to relieve their concerns which led to this MoU signing.
The MoU which has been signed by three entrepreneurs consisting of Thai Hua Rubber pcl, Von Bundit Co., Ltd. and Sri Trang Agro-Industry pcl, including TFEX’s five brokers namely Classic Ausiris Futures Co., Ltd., KT Zmico Securities Co., Ltd., Trinity Securities Co., Ltd., MTS Gold Future Co., Ltd., and Aira Securities pcl. More rubber entrepreneurs and futures brokers are expected to join collaborative programs in the future.
