Thailand Futures Exchange PCL (TFEX) will launch its latest product -SET50 Index Options - in 2007, anticipating a daily average turnover of 5,500 – 6,000 contracts. The Index is composed of top 50 companies listed on The Stock Exchange of Thailand.
The TFEX board approved the launch and will be exploring the feasibility of other products, including interested-linked and commodity-linked derivatives, Managing Director of TFEX Ms. Kesara Manchusree said.
“SET50 Index Options should be well-received by investors, as they are useful for both trading and hedging purposes. In overseas markets, index options are very popular as investors use them for loss limitation. To ensure sufficient liquidity, there will be market makers for SET50 Index Options,” Ms. Kesara said.
TFEX plans to educate the market about the product with support from Thailand Securities Institute and the SET prior to the launch, and to cooperate with brokers about marketing and promotion.
