The Thailand Futures Exchange TFEX plans to increase its competitiveness via 14 new core products aimed at serving different investor needs. The cabinet recently approved a proposal endorsed by the Finance Ministry to expand the scope of the futures exchange. Among the new products are precious metals including silver and platinum, other metals including copper, zinc, steel, aluminium and tin, other securities including coal, natural gas, electricity and plastic and variable goods including freight, carbon credits and commodity indices.
“The TFEX can add any appropriate product in the future to suit the particular investment climate. Well work at first with the core products that investors are interested in,” said Kesara Manchusree, the managing director.By law, the TFEX is allowed to trade futures, options and options on futures. Underlying assets are currently equities and other securities indices, debt instruments and interest rates, and non-agricultural commodities as well as other financial indices such as gold, crude oil and foreign currencies.
Currently trading on the TFEX are SET50 index futures, SET50 index options, single-stock futures, 50-baht weight 151.6 grammes and 10-baht gold futures. It will launch five-year government bond futures on Oct 18.Mrs Kesara said the TFEX would phase in other new products when there is demand or the time is right.Typically, the futures market will be active when trade in its underlying assets is volatile. But the SET index has been on an upward trend since June, as have gold prices, so futures trading has not been as active lately as expected.