thailand futures exchange august 10, 2005 kesara manchusree managing director
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TThailand hailand FFuturesutures ExExchangechange
August 10, 2005August 10, 2005
Kesara ManchusreeKesara ManchusreeManaging DirectorManaging Director
The Stock Exchange of Thailand
99.99%
99.99%
99.99%
TThailand hailand FFutures utures ExExchangechangeEstablished in 2004Established in 2004
Paid up capital USD 2.5 mln.Paid up capital USD 2.5 mln.
TThailand hailand FFutures utures ExExchangechangeEstablished in 2004Established in 2004
Paid up capital USD 2.5 mln.Paid up capital USD 2.5 mln.
TThailand hailand CClearing learing HHouseouse
Established in 2004Established in 2004Paid up capital US$ 2.5 Mil. +Paid up capital US$ 2.5 Mil. +Reserved fund from parent US$ 10 Reserved fund from parent US$ 10 MilMil
TThailand hailand CClearing learing HHouseouse
Established in 2004Established in 2004Paid up capital US$ 2.5 Mil. +Paid up capital US$ 2.5 Mil. +Reserved fund from parent US$ 10 Reserved fund from parent US$ 10 MilMil
About TFEXAbout TFEX
Mission
To be a world class exchange for the To be a world class exchange for the
trading and hedging of Thai derivatives trading and hedging of Thai derivatives
productsproducts
CommitmentOffering 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
Build brand awareness and image Reach and influence target marketTools:
Seminars Publications Road show
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
Public Relation
Public Relation
Education & Marketing
Education & Marketing
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.
Internet trading , direct access
Partner with members to improve quality and expand number of sales force
Product &liquidity
Market AccessMarket Access
TFEX’s Product UniverseTFEX’s Product Universe
FuturesFutures
OptionsOptions
Options Options onon
FuturesFutures
TypeTypeTypeType UnderlyingUnderlyingUnderlyingUnderlying
EquityEquity
•IndexIndex
•IndividuIndividual al stocksstocks
EquityEquity
•IndexIndex
•IndividuIndividual al stocksstocks
DebtDebt
• Interest Interest raterate
• Bonds / Bonds / BillsBills
DebtDebt
• Interest Interest raterate
• Bonds / Bonds / BillsBills
OthersOthers
•CurrencCurrencyy
•GoldGold
•Crude Crude oiloil
•Etc.Etc.
OthersOthers
•CurrencCurrencyy
•GoldGold
•Crude Crude oiloil
•Etc.Etc.The first product will be SET50 Index FuturesThe first product will be SET50 Index Futures
Bond/interest rate futures, index and stock options Bond/interest rate futures, index and stock options are planned to launched during the first two yearsare planned to launched during the first two years
TFEX memberTFEX member
• The first brokerage membership opportunity The first brokerage membership opportunity in TFEX was announced in late May this year.in TFEX was announced in late May this year.
• The first group of brokerage members will be The first group of brokerage members will be clearing members.clearing members.
• The final list of TFEX member will be The final list of TFEX member will be announced in late August.announced in late August.
• Incentive program for liquidity provider will Incentive program for liquidity provider will soon be launch to attract those who wish to soon be launch to attract those who wish to make maket in TFEX.make maket in TFEX.
Our Product HighlightOur 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: The Thai Market Movement: Jan 03 – Jul 05Jan 03 – Jul 05
300
400
500
600
700
800
900
Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05
SET Index
200
250
300
350
400
450
500
550
600
SET50 Index
SET Index
SET50 Index
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Aug-05Mar-05Nov-04Jun-04Feb-04Oct-03May-03Jan-03
Daily Trading Volume
0.00
1,000,000.00
2,000,000.00
3,000,000.00
4,000,000.00
5,000,000.00
6,000,000.00
SET Market Cap
Daily Trading Value
SET Market Cap
(Mil. Baht) (Mil. Baht)
Size and Volume of the Thai MarketSize and Volume of the Thai Market
SET50 Index Futures (Draft)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
Trading Hours Before and after stock market 15 minute
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 Thailand is one of the fastest growing economy in Asia with population over 60 economy in Asia with population over 60 Million.Million.
• Great potential growth of capital market Great potential growth of capital market with highly liquid stock market. with highly liquid stock market.
• Open economy with large numbers of Open economy with large numbers of international brokers .international brokers .
• No restriction on foreign investors & No No restriction on foreign investors & No transaction tax. transaction tax.
• Launching date (soft launch) in Nov 05.Launching date (soft launch) in Nov 05.
Thailand Futures Thailand Futures ExchangeExchange
www.tfex.co.thwww.tfex.co.th
For More Information For More Information Please contact our at 662-Please contact our at 662-229-2757229-2757