Summary of changes in rules and regulations of Thailand Futures Exchanges

Transcription

1 (UNOFFICIAL TRANSLATION) Readers should be aware that only the original Thai text has legal force and that this English translation is strictly for re ference. Thailand Futures Exchange Public Company Limited cannot undertake any responsibility for its accuracy nor be held liable for any loss or damages arising from or related to its use. Summary of changes in rules and regulations of Thailand Futures Exchanges Thailand Futures Exchange (TFEX) has made the following changes to the rules and regulations: 1. The contract specification of 1.1 SET50 Index Futures 1.2 SET50 Index Options 2. The trading hours of all futures and options contract 3. The rules and regulations pertaining to the new trading system 4. The regulations for persons involved in trading system The implementation will be effective on 6 May 2014 onwards. The details are as follows. 1. Changes to SET50 Index Futures and SET50 Index Options SET50 Index Futures Changes to the contract specification of SET50 Index Futures and the trading procedure relating to the changes in the multiplier of SET50 Index Futures. Items Details Existing Multiplier 1,000 Baht/Point 200 Baht/Point Exchange Fees 35 Baht/Contracts 7 Baht/Contracts Speculative Position Limit Maximum 20,000 contracts Maximum 100,000 contracts Large Open Position 500 Contracts 2,500 Contracts Maximum Volume per Order 100 Contracts 500 Contracts Guidelines for implementing the changes of SET50 Index Futures - On the launch date of the new trading system, the multiplier of SET50 Index Futures will be changed from 1,000 Baht/point to 200 Baht/point. Only the smaller size will remain and the trading symbol will be the same (S50myy). - The open interest of SET50 Index Futures on the business day one day before the launch date will be increased by 5 times on the morning of the launch date of the new trading system. - The margin requirement will be reduced to 1/5 (one-fifth) of the original margin requirement. Thailand Futures Exchange Page 1 / 7

2 - Market data such as trading volumes, open interest, etc, will continue to be distributed to various websites (TFEX, SETTRADE, and SETSMART). The market data of the SET50 Index Futures prior to the adjustment will be combined with the market data of the SET50 Index Futures after the adjustment without separating each contract. A remark about the modification of the multiplier will be posted SET50 Index Options Changes to the contract specification of SET50 Index Options and the trading procedure relating to the changes in the multiplier of SET50 Index Futures. Item Details Existing Speculative Position Limit Maximum 20,000 contracts Maximum 100,000 contracts Minimum Block Trade Volume 500 Contracts 100 Contracts 2. Changes to the trading hours Afternoon session will open 15 minutes faster for all futures and options contracts traded on TFEX. The ending time of the afternoon session will remain unchanged for all products. Item Existing Trading Hours Pre-open: 14:00 hrs - 14:30 hrs. Afternoon session: 14:30 hrs. close Details Pre-open: 13:45 hrs. - 14:15 hrs. Afternoon session: 14:15 hrs. close 3. Changes in rules and regulations in preparation to the new trading system To accommodate the new trading system, the following rules and regulations will be changed as detailed below. Trading system The identification of members will be in letters Identification of trading members The identification of members will be changed to numbers. If such member is also a member of SET, then the same ID can be used. Thailand Futures Exchange Page 2 / 7

3 Investors Type 1. Separated into 4 types 2. Use the following abbreviation 1. Separated into 4 types 2. Use full names instead. P, F, M, C Old P Principal F Foreign M Institution C Customer Opening Price 1. The price that generates the greatest executable volume 2. If there is more than one such price, the system will follow the pre-set guidelines to determine the opening price 1. The price that generate the maximum executable volume 2. If there is more than one such price, the price with minimum unexecuted volume will be chosen (Minimum Imbalance) 3. If there is more than one price in 2), the following price will be used (1) If there is more volume from the buy side (Positive Imbalance), use the highest price in 2) (2) If there is more volume from the sell side (Negative Imbalance), use the lowest price in 2) (3) If there is equal amount of volume, use the price closest to the latest price, if there is no latest price, use the price closest to the latest settlement price (4) If there are imbalances on both buy and sell side, considered the two price levels nearest to the price level where the imbalance changes sign. Among those two prices, use the one that is closest to the latest price, if there is no latest price, use the price closest to the latest settlement price Thailand Futures Exchange Page 3 / 7

4 Clearing system Not required Identification of clearing members Account opened with Clearing House Member must specify account type Members must specify their identification number in their orders as the clearing house will use this information for clearing purposes Not required Large Open Position Report Order Members must report Large Open Position according to the current regulations Large Open Position may be reported by the following: 1. Reported by a members or 2. Reported by other authorized entity as specified by TFEX. (i.e., The Clearing House) Order Types Order Types: 1. Limit Order 2. Market Order 3. Hidden Order 4. Combination Order Change Hidden Order is renamed as Iceberg Order Special Market Order An order to buy/sell immediately at the best all available current price If the order only partially matched, the system will automatically resend the remaining order that is 1 tick higher for the bid price or 1 tick lower for the ask Market to Limit Order An order to buy/sell immediately at the best available price If the order only partially matched, the system will resend the remaining order as a limit order at the last executed price Order Validity Order Validity: 1. Day 2. Good till Date 3. Good till Expiration The following order validity type will be added Good till Time order will be valid until the specified date and time or until cancel Thailand Futures Exchange Page 4 / 7

5 4. Fill and Kill (FaK) 5. Fill or Kill (FoK) 6. Stop Limit 7. Stop Market Good till Session order will be valid until the specified session or until cancel Good till Next Auction order will be valid until the next pre-open session or until cancel Price Limit of Combination Order Block Trade Minimum Tick Size of Block Trade The bid/offer price of combination order must not exceed the price limit as announced The bid/offer price of combination order must not exceed the lowest value between - The announced level of price limit and - The difference between Ceiling & Floor of the series making up the combination order The minimum tick size of The minimum tick size of block trade will now be more block trade must meet the precise as follows criteria as specified in the Products Minimum Tick Size contract specification Price Limit of Block Trade The price limit of block trade must meet the criteria as specified in the contract specification - SET50 Index Futures & Options Sector Futures, Stock Futures, Baht/USD Futures, Interest Rate Futures - Gold Futures, Silver Futures, 0.01 Brent Crude Oil Futures The price limit of block trade must not exceed the maximum price limit as specified in the contract specification Advertisement None Members may now - Advertise for block trading transaction through the trading system - Advertisement does not create any legal binding to follow through as advertise Thailand Futures Exchange Page 5 / 7

6 4. Changes in regulations for persons involved in trading system The qualification, duties, and fees related to authorized trader has been changed to accommodate the policies of the Securities and Exchange Commission (SEC). Qualification of Trader Duties of Trader 1. Being Sui juris 2. Have sufficient educational qualifications and experiences 3. Be a full-time employee of a member or selling agent who has entered into a selling agent agreement with a member 4. Never been subject to revocation of a license or registration to be an authorized trader due to punishment by TFEX, the SET, or other concerned regulatory agency 5. Not being an incompetent or quasiincompetent person 6. Never been imprisoned for an offence relating to counterfeit or forgery, trade or property 7. Not being in the period of an order for suspension from performance of duties or revocation of approval to be an investor contact by the SEC or other concerned regulatory agency 1. To comply with the law and rules and regulation on derivatives 2. To cooperate with TFEX in preventing any violations of the law and rules and regulations on derivatives 3. Not render cooperation or assistance to other persons in violation of (1) 4. Not to do any act which will or may discredit TFEX 5. Not to transmit any bid/offer for derivatives contracts which has inappropriate 1. No change 2. No change 3. No change 4. Change Not being in the period of an order for suspension or revocation of a license or registration to be an authorized trader during the past 5 years by TFEX, the SET, or other concerned regulatory agency 5. Change The quality of an authorized trader must follow the qualifications as specified by the Capital Market Supervisory Board 6. Canceled 7. Canceled 1 7 are required with additional duty 8. Traders may not analyze or give advice on trading of derivative contracts to a client without permission of a related regulatory agency Thailand Futures Exchange Page 6 / 7

7 characteristics as prescribed by TFEX 6. Not to use information of a client to seek interests for oneself and/or other persons 7. Not to transmit any bid/offer for derivatives contracts for oneself and/or other persons by using a derivatives trading account of a client Suspension of Trader Fees relating to Trader None Member shall pay the following fees to TFEX 1. Fee for the application for the appointment of an authorized trader 2. Fee for issuance of a new card in the case of damage or loss 3. For issuing a new password TFEX may suspend a trader if such trader have been suspended by the SET or the SEC 1. No change 2. Canceled 3. No change Thailand Futures Exchange Page 7 / 7