Thai bourse says TCH to raise margins for Songkarn holiday trade and update margin rates
Bangkok, April 5, 2013 - The Thailand Futures Exchange PCL (TFEX), under The Stock Exchange of Thailand group (SET), reveals Thailand Clearing House Co., Ltd. (TCH) will temporarily raise trading margins, so-called Super Margin, for oil, silver, and USD futures ahead of the Songkarn Thai new year holiday, effective on April 12.
TCH has also announced new trading margins for some derivatives products, effective from April 11, as a normal practice following market volatility. (The new rates will be posted on www.thaiclearing.com/en/derivatives/news.html).
TFEX Managing Director Kesara Manchusree said: "Investors holding contracts of oil, silver, and USD futures on April 12 should examine their margin adequacies with brokers. However, the margin requirements will return to normal after the week-long holiday on April 17 when the market re-opens. Thus, investors can withdraw their excess margins on that date."
TCH requested investors to prepare well in advance for the long holiday during which foreign markets will operate normally. Thus, Super Margin has been adopted for the three products to cope with risks from price volatility that may occur while the foreign markets remain open, resulting in the increases of initial margin (IM) and maintenance margin (MM) on April 12.
The IM for silver futures will be raised to THB 9,880 and its MM will be THB 6,916 per contract, while the IM for oil futures will be THB 19,380 and its MM will be THB 13,566 per contract. For USD futures, the IM will be increased to THB 684 and the MM will be THB 478.80 per contract.