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Published on October 26, 2007

JP Morgan of the United States, UBS Vickers of Singapore and Morgan Stanley of the US have already invested in the TFEX as they consider the market to be promising, Tisco Securities' managing director Paiboon Nalinthrangkurn said yesterday.

Since 2002 Tisco Securities has been in a joint-research agreement with Deutsche Bank's global equities business. If the broker achieves the target, its ranking in the TFEX would vault from 20th to 10th. It now has a 1.2-per-cent market share.

Paiboon said his firm would enlarge its customer base by at least 500 derivatives-trading accounts from 200 at present.

The new accounts would derive mainly from the broker's existing stock-trading customers, of which 40 per cent are retail investors, 35 per cent foreigners and 25 per cent local institutional investors.

The SET50 Index Options and Stock Options, which will be rolled out on October 29 this year and next year respectively, will receive enthusiastic support from investors, he said.

The TFEX earlier estimated that the daily average turnover in the market would be 5,000 to 6,000 contracts after the launch of the SET50 Index Options. The SET50 Index Futures is the only product available at the TFEX now.

The TFEX will use high trading-liquidity stocks as underlying assets for Stock Options products and this will open opportunities for investors to buy these stocks cheaper than the market price, Paiboon explained.

"We expect the TFEX to select around five stocks with high trading liquidity as underlying assets and this adds colour to the derivatives market," he said.

At present, 50 per cent of those investing in the TFEX are retail, while 25 per cent each are local and foreign institutional investors.

"I believe that the number of local and foreign institutional investors in the TFEX will increase if trading contracts reach 10,000 per day - the level that has sufficient liquidity for institutional investors," Paiboon said.

Siriporn Chanjindamanee

 The Nation