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Thailand Futures Exchange PCL (TFEX) has planned to launch the new rubber futures product “RSS3D Futures” with physical delivery available at the expiration of the futures contract, enabling investors and entrepreneurs in rubber industry to effectively utilize the new products for risk management to meet their needs. The new rubber product will start trading on May 16, 2016.
TFEX Managing Director Rinjai Chakornpipat stated, “Even though RSS3D Futures offers similar contract specifications to RSS3 Futures, the uniqueness of the RSS3D Futures is the physical delivery aspect at the contract maturity date, which can enhance confidence among rubber entrepreneurs to use it to manage their risks. This new feature corresponds with the rubber entrepreneurs’ demand, on top of the RSS3 Futures recently launched earlier this year in February.”
“TFEX has joined hands with The Thai Rubber Association (TRA) and rubber entrepreneurs to promote product development plan and provide market markers to boost liquidity, while particularly working with TRA to continuously educate rubber entrepreneurs on product specifications, trading techniques and RSS3D Futures benefits,” added Rinjai.
Thailand is the world’s largest natural rubber producer and exporter. Thai rubber production reached 4.5 million tons in 2015, accounting for 37 percent of the 12.2 million tons global output. In 2015, Thailand exported natural rubber and rubber products worth a total of THB 400.79 billion. Therefore, promoting RSS3D Futures and boosting liquidity on rubber products will benefit Thai rubber entrepreneurs and the country’s economy.
