Transcript Thailand Futures Exchange

Thailand Futures
Exchange
August 10, 2005
Kesara Manchusree
Managing Director
About TFEX
The Stock Exchange of Thailand
99.99%
99.99%
99.99%
Thailand Futures Exchange
Thailand Clearing House
Established in 2004
Established in 2004
Paid up capital USD 2.5 mln.
Paid up capital US$ 2.5 Mil. +
Reserved fund from parent US$ 10 Mil
Mission
To be a world class exchange for the trading
and hedging of Thai derivatives products
Commitment
Offering an efficient infrastructure to our market
participants with easy access and at a reasonable cost.
Maintaining a fair, orderly and transparent market.
Customer oriented and new products development.
Promoting knowledge based environment.
Business Strategy
Increase product coverage &
enhance liquidity
• Launch new products line including
sector index futures, Bond or S-T
interest rated futures and Index
options & Stock options
• Launch incentive programs to
attract market maker
to help provide liquidity. Product
Enhance knowledge and
understanding in the existing and
draw attention to new products by
organizing educational and
promotional programs for both
foreign and local investors
Simulation trading Competition
Event marketing: local& overseas
&
liquidity
Market Access
Education &
Marketing
Public
Relation
Internet trading , direct access
Partner with members to improve
quality and expand number of
sales force
Build brand awareness and image
Reach and influence target market
Tools:
Seminars
Publications
Road show
TFEX’s Product Universe
Type
Futures
Options
Options
on
Futures
Underlying
Equity
•Index
•Individual
stocks
Debt
Others
• Interest
rate
•Currency
• Bonds /
Bills
•Crude oil
•Gold
•Etc.
The first product will be SET50 Index Futures
Bond/interest rate futures, index and stock options
are planned to launched during the first two years
TFEX member
• The first brokerage membership opportunity
in TFEX was announced in late May this year.
• The first group of brokerage members will be
clearing members.
• The final list of TFEX member will be
announced in late August.
• Incentive program for liquidity provider will
soon be launch to attract those who wish to
make maket in TFEX.
Our Product Highlight
• Representative of Thai investable stocks.
• Based on the top 50 listed companies
which are most liquid and largest in size.
• Highly correlated with SET index.
• Command 70% of total market
capitalization and cover 60% of daily
trading volume.
• Daily Volatility of 1.15%
• Easy, fast and efficient through TFEX
integrate trading and clearing system.
( OMX Click XT and SECUR)
• No capital gain tax for individual investors
• Contract size of UD$ 12,500.
The Thai Market Movement:
Jan 03 – Jul 05
SET50 Index
SET Index
900
600
550
800
500
700
450
600
400
350
500
SET Index
400
300
Jan-03 Apr-03
300
SET50 Index
250
200
Jul-03
Oct-03 Jan-04 Apr-04
Jul-04
Oct-04 Jan-05 Apr-05
Jul-05
Size and Volume of the Thai Market
SET Market Cap
(Mil. Baht)
Daily Trading Volume
(Mil. Baht)
6,000,000.00
100,000
90,000
5,000,000.00
80,000
70,000
4,000,000.00
60,000
Daily Trading Value
3,000,000.00
50,000
SET Market Cap
40,000
2,000,000.00
30,000
20,000
1,000,000.00
10,000
0.00
Jan-03
May-03
Oct-03
Feb-04
Jun-04
Nov-04
Mar-05
0
Aug-05
SET50 Index Futures (Draft)
Underlying index
SET50 Index
Multiplier
1,000 Baht. ( Contract’s size is approximately USD 12,500)
Minimum Price
Fluctuations
0.10 index points
Price Limit
+ 30% of the previous day settlement price
Before and after stock market 15 minute
Trading Hours
Contract Month
Listed
March, June, September, December up to 4 quarters
Speculative Position
limit
10,000 net long or short in any contract month or all contract
months combined.
Bona fide hedger may request for exemption.
Settlement Method
Cash Settled
Final Trading Day
The business day immediately preceding the last business day
of the contract month
Final Settlement
Price
The Settlement Price shall be
• the numerical value of the SET50 Index, rounded down to the
nearest two decimal points
• the average of value of the SET50 index taken at one minute
interval during 4:00p.m. - 4.30p.m. plus the closing SET50
index value, after deleting three highest and lowest value.
Opportunities at TFEX
• Thailand is one of the fastest growing economy
in Asia with population over 60 Million.
• Great potential growth of capital market with
highly liquid stock market.
• Open economy with large numbers of
international brokers .
• No restriction on foreign investors & No
transaction tax.
• Launching date (soft launch) in Nov 05.
For More Information
Please contact our at 662-229-2757
Thailand Futures Exchange
www.tfex.co.th