The TFEX’s Managing Director, Mrs. Kesara Manchusree, has disclosed the progress of TFEX. The new entity has submitted its application to set up a trading exchange with the Securities and Exchange Commission (SEC) by having the Thailand Clearing House (TCH) to act as its clearinghouse. Concerning TFEX’s clearing and settlement system, “We are acquiring a state-of-the-art, international standards system from a renowned system developer abroad to be used for the trading our derivative products. Moreover, to facilitate our members, TFEX will also provide the front-end system for brokers as well,” Mrs. Kesara said.
“TFEX will begin accepting member companies or brokers in early 2005. Firms wishing to apply for membership must possess an SEC license to operate in the derivative brokerage business and must meet TFEX qualifications and regulations”, she continued.
In preparing the back-office facilities, TFEX is collaborating with the Back Office Service Bureau to provide related back-office services for derivative trading. Details on member applications, rules & regulations, preparation, and system testing will be provided and undertaken in early 2005. TFEX will closely coordinate with the Association of Securities Companies (ASCO) to get these things prepared.
Mrs. Kesara also said that “TFEX is still on track in developing the necessary pool of quality professionals for the inauguration of index futures trading. This includes executives, marketing representatives and staff of the brokerage firms. They will have an opportunity to gain from the extensive experiences of both domestic and overseas trainers. Courses will continuously be held throughout the year and will be especially designed to fit each specific audience. Trading simulations will also be provided to give participants hands-on experience.”
“On the investor side, TFEX will organize courses specifically for both retail and institutional investors. The courses will be designed with an emphasis on product profiles, and investment techniques and strategies. Investors can attend TFEX’s training without any charges. Additionally, TFEX will be knocking on the brokers’ doors to reach investors in the brokers’ trading rooms,” Mrs. Kesara said.
TFEX will cooperate with academic institutions in producing a new generation of young, enthusiastic, high-quality industry professionals to further help develop the Thai derivatives market.
