ASEAN KEY DESTINATIONS
Forex trade for securities firms approved
The central bank plans to issue foreign-exchange licences to qualified brokers with sound financial standing within two years.
Dr. Prasarn said the central bank also planned to allow the Thailand Futures Exchange (TFEX) to trade dollar/baht futures.
"The dollar/baht future will become a reasonable option for small and medium-sized enterprises as it has a relatively lower spread than other hedging products," he said.
Veerathai Santiprabhob, chief strategy officer at the Stock Exchange of Thailand, said the central bank would likely issue details about foreign-exchange for securities companies in the next two months. It would then conduct hearings with industry representatives in the fourth quarter.
Pattera Dilokrungthirapop, chairwoman of the Association of Securities Companies (Asco), welcomed the development, noting that the central bank already allowed brokers to invest in foreign assets.
"Foreign-exchange transactions and positions are necessary for us when we are connected to the global capital markets. No matter how we invest abroad for ourselves or for customers, those investment transactions cause us to have foreign-exchange positions," she said.
"We must able to [manage forex transactions] by ourselves. Otherwise, we will unable to compete with brokers in Singapore and Malaysia where they are allowed to offer forex services."
Ms. Pattera said the service would help enhance the long-term competitiveness of local brokers.
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