The Managing Director of the TFEX, Mrs. Kesara Manchusree, disclosed that drafting of the rules and regulations for futures trading is proceeding nicely. Today (June 29), the TFEX held a meeting to clarify the rules & regulations being drafted to all relevant parties. Following last minute adaptations stemming from the discussions, TFEX will submit these rules to the Securities and Exchange Commission (SEC) for further approval.
“Today’s presentation will make it clearer to everybody about how the trading process for the SET50 Index Futures will work, what regulations relate to the traders, what measures will be used in cases of rule infringements, and the intermediary process,” Mrs. Kesara said.
Trading of the SET50 Index Futures will, for the most part, be similar to stock trading. Order matching will be based on price and time priority. Only licensed traders will be authorized to send orders into the trading system. However, the clearing and settlement will be different: in the futures market, the clearing and settlement period will be only one day after the transaction date (T+1).
Today, TFEX discussed the work process, the status reporting system for futures contracts, and how to deal with trading malfunctions with its members.
TFEX extended the deadline for membership acceptance, which has been taking place since the middle of June, through the end of July. Presently over 30 securities companies have shown a strong interest in membership; the TFEX initially targeted having only 15 members. The TFEX membership selection committee will consider each applicant companies’ qualifications and readiness prior to submitting its recommendations to the TFEX’s board of directors.
“The TFEX has collaborated with OMX Technology to develop TFEX’s trading system, and progress has been as planned. The system will be installed at the TFEX next month. The system will be connected to the brokers’ systems in August and training of relative parties will start in September. Qualified companies will be invited to participate in a joint system test and other preparations before real trading takes place at the end of this year,” Mrs. Kesara concluded.
