Thailand Futures Exchange PCL (TFEX) is now entering the final phase before launching its new product, gold futures. It is now selecting market makers, to increase market liquidity. Futures Industry Club (FI Club), not TFEX, is the body determining commission rates, while selling agents are expected to provide futures services to general customers in March.
TFEX Managing Director Kesara Manchusree disclosed that "Testing of trading, clearing and settlement systems has already been completed with the clearing house and TFEX members. Trinity Securities Co., Ltd. has already agreed to be a market maker, and we expect that there will be two more market makers soon. These firms, together combined with the popularity of purchasing gold for investment will increase adequate liquidity."
FI Club has determined that commissions on gold futures will scale. For one to five contracts per day, the commission will be THB500 per contract; for the sixth through twentieth contract, it will be THB400 per contract and for the twenty-first contract on up, the rate will be THB300 per contract.
FI Club has also set the initial margin at THB66,500 per contract and maintenance margin at THB46,550 per contract.
TFEX has asked its members to adjust their operating systems so that gold shops will be ready to serve futures investors in late March.