"Until now, problems from the testing system remain. For instance, when there are long and short orders at the same time, the system should execute the orders but both orders become short orders," a brokerage source said last week. "The problem might result from a hefty volume of orders. If trade in the first day is not brisk, the problem might not appear."

In futures markets, long means buy and short means sell.

The TFEX has already confirmed that it is set to inaugurate operations as scheduled and brokers' services will be available on the same day, the source said.

"If the problem arises, we have to see whose system caused it and the parties will have to take responsibility," the source said.

Brokers have not been convinced that the TFEX has cleared up technical glitches in time for opening day. The derivatives market has already had to delay its debut once, from last year, due to the unready state of the system.

Already 20 brokers - including Phatra Securities, Capital Nomura Securities, Kim Eng Securities (Thailand), DBS Vickers Securities (Thailand), and KGI Securities (Thailand) - have received trading licences.

The source said most orders for the SET 50 Index futures, the TFEX's first product, would be short rather than long as the index has been rising dramatically.

"This might make for a quiet market [as sell orders outnumber buy orders]," the source said.

Kavee Chukitkasem, senior vice president of Capital Nomura Securities, said his firm was ready to offer derivatives trading services if the TFEX confirms to go ahead as scheduled, though there are a few problems from the test. 

Siriporn Chanjindamanee

The Nation