News Detail

Date/Time 16 Mar 2015 14:06
Subject TFEX News :TFEX-AFET announce merger to drive Thailand agricultural futures exchange
Product SET
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      TFEX News 3/201
                                                                                
      March 16, 2015

TFEX-AFET announce merger to drive Thailand agricultural futures exchange

Bangkok, March 16, 2015 - Thailand Futures Exchange PCL (TFEX) - under the Stock
Exchange of Thailand (SET) group, together with The Agricultural Futures
Exchange of Thailand (AFET), The Office of the Agricultural Futures Trading
Commission (AFTC) and The Securities and Exchange Commission (SEC) have joined
hands to consolidate Thai agricultural futures exchange under TFEX's management
following the government's policy, ensuring more efficiency and minimizing
trading cost, while aiming to expand  internationally.
Under the merger plan, AFET, currently operating Thailand's agricultural futures
market, will be merged with TFEX, offering a fully integrated trading,
clearing, settlement and depository services of derivatives products. This aims
to form one single futures market for all, in order to enhance the efficiency
and provide benefits to investors in doing one-stop trading markets for all
futures products.
Sathit Limpongpan, Chairman of SET and TFEX, stated, "The merger deal is in line
with the global trend to enhance operational efficiency and reducing
transaction cost for investors' benefits. We strongly believe that both domestic
and foreign investors can more conveniently trade agricultural futures products
through one single derivatives platform provided by TFEX, while placing
required collateral at one location only, resulting in effective cost
management. Forward looking, the market will be more easily internationalized,
linking to the global network, for the benefit of investors, entrepreneurs and
the Thai economy."
SEC Secretary-General Vorapol Socatiyanurak said, "SEC is very pleased to 
support this merger. In January 2015 SEC approved three key principles covering:
1) products and markets 2) entrepreneurs 3) employees, in order to facilitate
smooth integration considering overall picture of futures markets and
stakeholders, consisting of entrepreneurs, investors as well as members of AFET
and AFTC. The SEC has been meeting occasionally with members of AFET and AFTC to
exchange opinions, as such the process has made a great progress in many
aspects. This merger is a vital step for the futures market development in
diversifying products and increasing supervision efficiency. This will increase
competitiveness of the Thai capital market, providing benefits to entrepreneurs
and the Thai economy."
AFET Chairman Chaipat Sahasakul said, "AFET has continuously supported the 
collaboration with TFEX in the merger. We also have transferred to them the
settlement and delivery know-how of agricultural futures products. In addition,
we have prepared member brokers to be ready to become TFEX's members. This
integration will benefit investors and stakeholders including AFET's members
with opportunities to expand their businesses. We appreciate TFEX and the SEC's
cooperation and support to AFET in enhancing the Thai agricultural sector."
AFTC Deputy Secretary-General Prayuth Sirisawatpipat said, "In accordance with 
the Ministry of Commerce's policy, AFTC supports this integration to enhance
agricultural futures market for the Thai agricultural sector and to manage the
reference price in benchmarking with the global price. AFTC has been
coordinating with stakeholders for inputs to amend the Agricultural Futures
Trading Act so as to allow TFEX to trade agricultural futures products. AFTC has
also facilitated AFET's members and investors in transferring their trading
rights from AFET to TFEX. All these will truly benefit the companies and
investors."
The four organizations have continuously prepared for the integration, 
especially the regulations and systems. The implementation will start
immediately after the Agricultural Futures Trading Act and related laws are in
effect. Meanwhile, AFET's members are being prepared to be TFEX's members so as
to continue trading seamlessly.  After integration, all agricultural futures
products will be traded under TFEX's trading systems. The clearing and
settlement can only be done at Thailand Clearing House Co., Ltd, under the SET
group. TFEX investors can trade agricultural futures products by using their
existing futures accounts with TFEX brokers. AFET investors will be able to hold
on to their contract until expiration with their current AFET brokers, or open
new TFEX futures trading accounts if they wish to trade financial futures
products.

SET Group "Matching Your Right Financial Opportunities"
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Disclaimer
This announcement was prepared and disseminated by listed company or issuer through the electronic system which is provided for the purpose of dissemination of the information and related documents of listed company or issuer to the Stock Exchange of Thailand only. The Stock Exchange of Thailand and Thailand Futures Exchange Pcl. have no responsibility for the accuracy and completeness of any statements, figures, reports or opinions contained in this announcement, and has no liability for any losses and damages in any cases. In case you have any inquiries or clarification regarding this announcement, please directly contact listed company or issuer who made this announcement.