Thailand Futures Exchange PLC (TFEX) will begin trading silver futures from June 20 and extend the gold and silver futures trading until 22.30 hours, enabling investors to manage risks and improve their profits. TFEX is a part of The Stock Exchange of Thailand,
TFEX has successfully completed systems testing with Thailand’s clearing house and derivative members, and TFEX has held seminars over the past three months to ensure that investors and exchange members understand this new security.
“TFEX is confident that extending gold and silver futures trading hours will boost convenience for investors in managing risks and create better returns. This is particularly true for those who want to trade when the New York market, which is also having a period of high volatility, is open” said TFEX Managing Director Kesara Manchusree.
Thirty-three brokers have affirm their readiness to operate gold and silver future trades in the evening, and TFEX has also appointed six derivative brokers as market makers to manage liquidity during the trading hours. The market markers, which are Ausiris Futures Co.,Ltd., Globlex Securities Co., Ltd., Hua Seng Heng Gold Futures Co., Ltd., MTS Gold Futures Co., Ltd., Trinity Securities Co., Ltd. and YLG Bullion & Futures Co., Ltd. all have experience in managing liquidity of gold future trades.
The commission for silver futures trade will be the same for 10-baht gold futures, the Futures Industry Club announced. The club also announced that the initial margin would be THB29,450 per contract and maintenance margin would be THB20,615 per contract.
Silver futures uses 99.9% pure silver as its underlying asset, which is a standard purity level for trading in the international markets. The contract size is set at 100 troy ounces (approx. 3 kgs.), worth around THB140,000 (approx. USD4,600). The silver futures settlement method will be cash settlement, using the London Silver Fixing Price as the reference price.
