The Securities And Exchange Commission Of Thailand: License For Operation Of Futures Exchange And Clearing House

To accommodate the inauguration of futures market in 2005, the SEC at the meeting 9/2547 on Friday, September 10, 2004 approved rules and regulations on licensing and undertaking business as futures exchange or clearing house.

1. Futures Exchange
   • Being public limited company with registered paid up capital not less than 100 million baht.
   • Having the Board of Directors comprising (1) at least one director being representative of investors or persons who is able to protect investors’ interests, and (2) at least two directors with expertise in underlying products. All directors must have no prohibited characteristics.
   • Having the following efficient systems in place: (1) trading system, (2) information and database system with audit trail, (3) market surveillance system, (4) preventive measure against unfair practices, (5) contingency plans, (6) rules governing members, and (7) qualified staff.
2. Futures Clearing House
   • Being limited company or public limited company with registered paid up capital not less than 100 million baht and source of fund of at least 500 million baht to accommodate the clearing system.
   • Having the Board of Directors with no prohibited characteristics
   • Having (1) clearing system which the clearing house will act as central counter party (CCP) with all members, (2) risk management system, (3) contingency plans, (4) rules governing members, and (4) qualified staff.