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The Managing Director of TFEX, Mrs. Kesara Manchusree, disclosed that TFEX will be open for trading 2005, with its first product being the SET50 Index Futures. TFEX’s products are going to be another quality investment alternative which can be utilized as efficient risk management tools. TFEX’s products will also be another investment choice for institutional and retail investors, both domestically and abroad.
The SET50 Index will be the underlying index for this first futures product. The Index is calculated from the top 50 securities, which are determined by identifying the 50 securities with the largest market capitalization as well as high and consistent trading liquidity. The SET adjusts this list of 50 securities every six months, in January and July. The list will be announced two weeks before it will become effective for the next 6-month period.
“The futures business’ operators will play an essential role in the commencement of futures trading. TFEX will therefore support them in all possible ways, e.g., it has coordinated with the Securities and Exchange Commission (SEC) to help guide them through the process of getting their brokerage licenses. TFEX and the SEC have also teamed up to help industry professionals learn more about the rules and regulations pertinent to the interacting with their investors. These rules pertain to both the securities analysts and marketing representatives so that they can operate appropriately,” Mrs. Kesara noted.
“TFEX, in conjunction with Thailand Clearing House Co., Ltd. (TCH), recently clarified their membership rules to interested groups. They will provide full support to prospective members to help them better prepare required systems related to the trading, clearing and settlement of futures. We will also assist them in their human resource development. All these preparations have been undertaken to make sure that all related parties are ready when Thailand’s futures exchange is operating at full stream,” Mrs. Kesara concluded.
