Thai Exchange Chooses To Develop Co-Branded Index With FTSE

To boost its international profile and support innovative products, The Stock Exchange of Thailand (SET)’s Board of Governors has approved the FTSE Group to co-develop and manage the exchange’s new index.

The development is expected to bring the Thai index in line with international markets and better meet the needs of the modern investor, SET’s Senior Vice President-Research and Information Division Dr. Sethaput Suthiwart-narueput declared.

“FTSE Group is an international index provider with extensive experience with several exchanges including London Stock Exchange, Singapore Exchange, and Tokyo Stock Exchange. Collaborating with them will promote the Thai bourse internationally and prepare us for product innovations such as the ETFs (exchange traded funds), Islamic Index products, and derivatives,” Dr. Sethaput said.

SET and FTSE Group will soon sign a memorandum of understanding, after which they will jointly conduct joint domestic and international market consultations, outline the index policy for both new and existing ones. The whole process will be underpinned by detailed long and short-term planning.

In selecting an index provider, the SET working committee sought proposals from FTSE Group, Dow Jones Index, S&P Index, and MSCI Barra Group. Their choice was based on co-branded index policy, experience in product innovation, experience in working with Asian exchanges, teamwork and planning, and index-related business plans.