Thailand Futures Exchange

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Thailand Futures Exchange

• August 10, 2005
• Kesara Manchusree
• Managing Director

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About TFEX
The Stock Exchange of Thailand
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• Thailand Futures Exchange
• Established in 2004
• Paid up capital USD 2.5 mln.

• Thailand Clearing House
• Established in 2004
• Paid up capital US 2.5 Mil.
• Reserved fund from parent US 10 Mil

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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.

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Business Strategy

• 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

• 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 liquidity
Education Marketing

• Build brand awareness and image
• Reach and influence target market
• Tools
• Seminars
• Publications
• Road show

Public Relation

• Internet trading , direct access
• Partner with members to improve quality and
  expand number of sales force

Market Access
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TFEXs Product Universe
Type
Underlying

• Equity
• Index
• Individual stocks

• Debt
• Interest rate
• Bonds / Bills

• Others
• Currency
• Gold
• Crude oil
• Etc.

Futures
Options
Options on Futures
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
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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.

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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

SET50

• 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.

SET50 Futures
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The Thai Market Movement Jan 03 Jul 05
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Size and Volume of the Thai Market
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SET50 Index Futures (Draft)
Underlying index SET50 Index
Multiplier 1,000 Baht. ( Contracts 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 400p.m. - 4.30p.m. plus the closing SET50 index value, after deleting three highest and lowest value.
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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.

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For More Information Please contact our at
662-229-2757