Thai bourse gold futures trading prices align with global market
Bangkok, April 17, 2013 – The Thailand Futures Exchange PCL (TFEX), under The Stock Exchange of Thailand (SET) group, announced that trading of gold futures today was normal despite global gold price fluctuation, and by end-of-day, the price of gold futures had dropped only 11.2%. Also, Thailand Clearing House Co., Ltd. will adjust margin rates for gold and silver futures, effective on April 22, 2013.
TFEX Managing Director Kesara Manchusree said: “Gold and silver futures prices plummeted by 10% from the latest settlement price from last Friday at the start of the session after the long holidays. TFEX then halted trading of both contracts for 30 minutes, helping investors to thoroughly consider all related information, monitor the changing prices of each commodity, and review their trading strategies, before the trading session opened again. In addition, the daily price limit was expanded to +/- 20% of the latest settlement price. This was the first time that TFEX had used a circuit breaker for gold futures. However, the settlement price of gold futures in June was THB 19,050, decreasing 11.2% from the latest settlement price of last Friday at THB 21,450.”
“To help investors more easily adapt their portfolios, TFEX has temporarily adjusted the minimum block trade of gold futures to 1 (one) contract, down from 100 contracts. The block trading of gold futures today was 240 contracts and the total trading volume during the day session was 18,827 contracts, namely 12,006 contracts of 10 baht gold futures and 6,821 contracts for 50 baht gold futures. Including the trading volume during the night session of last Friday, the overall trading volume of gold futures was 31,202 contracts,” Kesara said.
“Due to price volatility of precious metals in global markets during the past long weekend in Thailand, Thailand Clearing House Co., Ltd. (TCH) will raise margins of 50 baht gold futures to THB 40,000 per contract, 10 baht gold futures to THB 8,000 per contract, and silver futures to THB 5,500 per contract, effective from April 22. Thus, initial margins (IMs), that investors will have to deposit before trading will be THB 76,000 per contract for 50 baht gold futures and THB 15,200 per contract for 10 baht gold futures. For silver futures, the IM will be THB 10,450 per contract. These adjustments are aligned with international practices at global clearing houses. Following global price fluctuation of the related underlying products, investors should closely monitor global commodity prices and ensure that they have sufficient margins,” Kesara concluded.