TFEX postpones gold trading to next year

The Futures Industry Club (FI Club) has agreed with TFEX to post¬pone gold futures trading to allow physical gold traders time to study and prepare for the new commodity.

"The TFEX, Securities and Exchange Commission, and representatives of FI Club have discussed with representatives from several physical gold trading associations. Those who are qualify under TFEX's regulations can trade gold early next year," Kesara Manchusree, manag¬ing director of TFEX, said yesterday.

Gold futures trading had been scheduled to start on September 22.

Physical gold traders will participate in gold futures trading as introducing agents or selling agents of TFEX, or members who trade gold futures products.

TFEX also aims to introduce sin¬gle stock futures at the end of November to complement index futures.

TFEX is proposing contract spec¬ifications and rules for single stock futures to the SEC before conducting a test run with its members early next month.

Initially, five reference stocks with large market capitalisations and high liquidity have been picked for the single stocks.

They are also marked by wildly fluctuating price movements.

Both institutional and retail investors can trade stock futures or use them to manage their investment portfolio more easily and with greater flexibility than before.

TFEX has recently approved nine members, bringing the total membership of TFEX to 36.

Aira Securities Plc, Adkinson Securities Plc, BFIT Securities Plc, Far East Securities Co Ltd, Finansa Securities Co Ltd, Globlex Securities Co Ltd, IV Global Securities Plc, Kasikorn Securities Plc and United Securities Plc can start trading on the TFEX on September 22.