SET launches first index derivative warrants on SET50

Economy April 19, 2014 00:00

By The Nation

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The Stock Exchange of Thailand has started trading its first five derivative warrants (DW) on the SET50 index. DW trading accounts for 2.74 per cent of total securities trading value, higher than other key markets in the region.

SET executive vice president Kesara Manchusree said the five newly launched derivative warrants would be a good choice for investors seeking to manage their portfolios more efficiently and effectively, in line with international markets. Of the five DWs, four were launched by Macquarie Securities (Thailand) and the fifth by KGI Securities (Thailand).
The introduction of DWs on SET50 followed the bourse’s announcement last year that it would add more underlying assets for DWs, such as those covering stocks in the SET100 index with market capitalisation of at least Bt10 billion, exchange-traded funds tracking SET Index series, as well as the SET Index series itself. 
The new DW launch was a result of an attempt of the SET together with the Investment Banking Club of the Association of Securities Companies and the Securities and Exchange Commission that jointly considered the terms and conditions of DWs on SET Index series. Consequently, the SEC approved the terms and conditions document late last month.
“First-quarter trading of DWs was worth Bt48.32 billion in total, or 2.74 per cent of the total securities trading value, the highest proportion compared with other markets such as Korea, Malaysia, Singapore and Taiwan,” Kesara said. 
“The trading proportion has risen continuously from 2.10 per cent in 2013 and 0.95 per cent in 2012. By the end of the first quarter of this year, there were 637 DWs on the market. Of those, 328 were new DWs launched in the period, up 74 per cent from a year ago when there were only 188 new DWs launched.” 
To familiarise investors with the index DWs, the SET will join with DW issuers to hold a seminar this month. For more information, interested persons can visit