Only TFEX member are allowed to access the TFEX trading system. Currently the member structure is as followed.
Full License Member
Full License Members can trade all products listed on TFEX. They can trade for their own account and also trade for their clients. These members are required to obtain a derivatives agent license from the Securities and Exchange Commission (SEC) before applying to be a member of TFEX.
Limited License Member
Limited License Members are able to trade derivatives contracts on TFEX for their own account and also trade for their clients. However, they are limited to the underlying or variables under their licenses as issued by the SEC.
Trading Members can trade derivatives contracts on TFEX for their proprietary account only. Trading Members shall provide liquidity for the contract as a role of market maker with the expertise on either Futures trading or underlying business.
How to apply for membership
To apply for a membership on Thailand Futures Exchange, each applicant must meet the following requirements.
Qualifications for the Full License Member 1.1
Must have a license to undertake derivatives business in the category of full license member by the SEC
1.2 Must have a minimum paid-up capital and maintain a minimum amount of net liquid capital (NC) according to the criteria prescribed by the SEC
1.3 Must fulfill the following conditions:
Having the executives who are qualified and have no prohibited characteristic under the law on derivatives or according to the criteria prescribed by the SEC and having the minimum numbers of officers who have knowledge and/or experience in derivatives transactions and can perform the duties as follows: investor contacts (Marketing), authorized traders, Compliance Officers who supervise the performance of services related to derivatives contracts
Having computer system and computer hardware that can be connected with TFEX, together with operation necessary for performing the services of derivatives trading
Having policies and procedures for managing and monitoring credit risk, operational risk, market risk arises from changes in prices of derivatives contracts or prices of commodities or variables underlying the derivatives contracts as well as legal risk which can support the undertaking of derivatives business.
Limited License Member
2.1 Must have a license to undertake a derivatives trading business in category of derivatives broker limited to contracts of the underlying or variable specified by SEC
2.2 Must have a minimum paid-up capital according to the criteria prescribed by the SEC and maintain a minimum amount of net liquid capital (NC) according to the criteria prescribed by the SEC
2.3 Must fulfill the conditions in terms of Human Resource, Working System, and Risk Management in line with the Full License Member.
3.1 Must be approved by its board of directors and/or its related regulator
3.2 Must have registered capital a and shareholders’ equity of not less than Baht 25 million
3.3 Must fulfill the following conditions:
Having a sufficient number of authorized traders to undertake the derivatives business in an efficient manner
Having computer system and computer hardware that can be connected with the computer system of TFEX, together with other operating systems necessary for the performance of services of derivatives trading which are provided by TFEX
Having policies and procedures for management of financial risk, operational risk, and other risks in line with the Full License Member