Thailand Futures Exchange PCL (TFEX) will accept more members in 2008 to expand its investor base and prepare for the launch of stock options. Total turnover in derivatives is expected to double from a daily average of 5,000 to 10,000 contracts.
“In March 2008, interested brokerages may apply for TFEX membership, which will be awarded on the basis of applicants’ qualifications, not the number of seats available. The initiative is subject to Securities and Exchange Commission approval and more details will be available in January,” TFEX Managing Director Ms. Kesara Manchusree said.
Option contracts for equities will be linked to a listed stock. This product has been popular in international markets, as it is a relatively inexpensive way to help manage a portfolio. By Q1/2008, TFEX will have worked out the best way to select an underlying stock for the new product.
TFEX will continue its marketing and educational campaigns and is currently exploring potential alliances with the Options Industry Council (OIC), a U.S.-based options education organization, founded by a coalition of American exchanges and clearing organization (American Stock Exchange, Boston Options Exchange, Chicago Board Options Exchange, International Securities Exchange, NYSE Arca, Philadelphia Stock Exchange and Options Clearing Corporation).
