Thai bourse launches silver futures & extends trading hours for silver & gold Futures in June 2011

Wednesday 23 February 2011 11:14
The Thailand Futures Exchange Plc (TFEX), part of The Stock Exchange of Thailand, will begin trading silver futures and extend trading hours for gold and silver futures until 22:30 hours, both starting in June 2011.

Silver has been gaining popularity among investors due to its upward price tendency and its relationship with gold prices, TFEX Managing Director Kesara Manchusree reported. Investors in gold can employ similar trading strategies for both precious metals. Moreover, they see more opportunities in silver because of its comparatively low price and high volatility.

TFEX’ specification for trading silver futures are similar to those for 10-baht weight gold futures. This means the silver futures’ contract size is set at 100 troy ounces (approx. 3.1 kgs.), which are worth around THB90,000 (approx. USD3,000). Silver will be quoted in Thai baht (THB) per troy ounce, and its underlying price will be based on 99.9% pure silver. Final settlement will be in cash when the contract expires, instead of physical delivery. Final settlement prices for silver will use information from the same source as when gold futures are settled, i.e., London Bullion Market Association ( LBMA).

In order to better respond to investor demand for longer trading hours to match with those in the US market, where trade is heavy and highly volatile, TFEX has decided to extend daily trade hours for gold futures and silver futures to 22:30 hours. These extended hours will commence on the same day that silver futures trading begins, in June.

“TFEX is confident that the longer trading hours will effectively help investors better manage their risks and add more attraction to gold and silver futures trading”, concluded Ms. Kesara.

For more information, please contact S-E-T Call Center 0 2229 2222

Members of the media should contact the Public Relations Unit, Corporate Communications Dept.: Ladawan Kantawong, tel: 0-2229-2036 / Nattaya Muangman tel: 0-2229-2043/ Anyarat Anyawutikrai tel: 0-2229-2042