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Trading on the Thai Futures Exchange (TFEX) in 2010 was 46.96% more than in 2009, reaching 4,519,436 contracts for 2010, a daily average of 18,676 contracts. SET50 Index Futures was the most popular product, accounting for 54.68% of total contracts traded, followed by gold futures and single stock futures at 21.49% and 21.45%, respectively.
TFEX’s record rise in total trades was over double its target of 20.00%, TFEX Managing Director Kesara Manchusree revealed. Single stock futures was a major factor contributing to the impressive performance, as the 2010 volume of 969,353 contracts was 5.65 times the total of 145,758 contracts in 2009. This excellent growth was because investors had become more familiar with single stock futures and realized that it could be an investment alternative as well as an effective risk management instrument while trading in listed Thai stocks was heating up.
Moreover, gold futures has drawn sizable interest from investors in the past year, with daily trading volume doubling from 1,397 contracts in 2009 to 4,014 in 2010. Trade value in the past year totaled THB3.14 billion (approx USD104.46 million.) The launch of the 10-baht gold futures in August 2010 and the many gold futures roadshows held throughout Thailand have helped boost this product.
As of December 30, 2010, TFEX recorded a total of 77,955 contracts in open interest, or 175.64% higher than the 28,281 contracts in 2009. There was a total of 41,880 TFEX accounts at end-2010, or a 41.75% y-o-y rise from the 29,546 accounts at end-2009. Local retail investors represented 57.21% of total trade, with foreign investors and local institutional investors recording 10.09% and 32.70%, respectively. Trade by local institutional investors has been mainly by market makers, following the addition of new derivatives, including single stock futures, gold futures, and interest rate futures in 2010.
The top five derivatives brokers with the highest trade volume were Globlex Securities Co., Ltd., with 13.40% of total trade; followed by Phillip Securities (Thailand) PCL with 9.25% , Kim Eng Securities (Thailand) PCL with 7.91% , Trinity Securities Co., Ltd. with 6.10% and KGI Securities (Thailand) PCL with 5.64%.
For gold futures, last year’s top five brokers recorded as much as 63.89% of total trade, with each of them being already active in the gold business. The leaders were Globlex Securities Co., Ltd., with 20.98% of total trade, followed by MTS Gold Futures Co., Ltd., with 15.12%; Ausiris Futures Co., Ltd. with 13.91%, YLG Bullion and Futures Co., Ltd. with 7.77% and Hua Seng Heng Gold Futures Co., Ltd. with 6.11% .
In 2011, TFEX will focus on adding liquidity to existing products through various promotional activities, which will be organized in collaboration with member companies. Such activities will provide investors with more knowledge on trade strategies and encourage more trade analyses by related firms. New products, including silver and oil futures, are also planned to be offered as alternatives for investors. The TFEX will also extend trading hours into the night so that investors in commodities that are traded globally and around the clock, such as gold and silver, to more effectively manage risks.
