They are KGI Securities (Thailand), Phatra Securities and Phillip Securities (Thailand), who start work for the exchange on Monday.

A market-maker is a firm that is ready to buy and sell specific securities regularly at a publicly quoted price to increase trading liquidity.

"The market makers will send buy-and-sell orders for the SET50 Index Futures in each series to raise their liquidity and to enhance investor confidence. A boost in trading liquidity is crucial for the futures market," TFEX president Kesara Manchusree said yesterday, adding that the market makers will be a driving force for futures market growth.

The introduction of the three firms will increase the possibility that TFEX can achieve its daily target of 1,000 contracts on average this year, said Kesara.

Since the market was inaugurated on April 28, it has had an average daily trading volume of 737 contracts.

The TFEX is to launch index options - its second product, after the SET50 Index - in the second quarter of next year.

The wider variety of products on the market will attract investor interest, she said.

The three market-makers will receive a discounted Bt15 commission per contract if they achieve at least two series in a trading day, and Bt5 each if they manage four or more series.

These fees run until the end of the year, which is when their initial contracts with the TFEX expire. The normal commission is Bt50 per contract.

Siriporn Chanjindamanee

The Nation