SET Annual Report 2014

Annual Report 2014

Products and services

Equity instruments

In 2014, SET adjusted the calculation criteria for

the SET50 and SET100 indices, in case the securities

as their components, encounter a tender offer that will

result in a drop of lower than 20 percent free float.

SET will then take those securities out of the Index

calculation. SET will inform investors in advance. This

will take effect from January 2015 onwards.

In 2014, the number of new derivative warrants

(DW) rose to 1,371 up 80 percent from 761 in 2013.

By the end of 2014, the derivative warrants totaled 926.

There were five new exchange-traded funds (ETF), with

reference to the SET50 index and other international

indices, considered as major investment indicators

in various regions, such as S&P500, containing

the stocks of 500 large-cap corporations in USA;

MSCI EMU, containing the stocks of 500 large-cap

corporations in Europe; MSCI Japan, containing the

stocks of 500 large-cap corporations in Japan; and

MSCI Emerging Market, containing the stocks of 500

large-cap corporations in newly emerging markets.

There were 21 ETFs by the end of 2014.

In addition, SET developed new products, by

preparing for trading of depository receipt (DR), or

warrants for foreign securities, as the related regulations

have been approved by the SEC, ready for implementation,

in line with the SEC’s regulations.

Futures exchange

Thailand Futures Exchange pcl (TFEX)

has increased operational efficiency, improved

product quality and upgraded service excellence in

many aspects, aiming to better facilitate trading

among investors and to ensure broader applications.

TFEX has adjusted its trading and clearing systems on

the same platform as the current SET CONNECT for

equity instruments. This single platform will support the

formulation of trading strategies that integrate trading

transactions of derivatives and equity instruments.

It will also enable faster, more convenient and more

efficient development of new financial products and

instruments. Furthermore, in 2014 TFEX expanded the

afternoon trading period, making 15 minutes earlier

than the normal trading time.

On May 6, 2014, TFEX adjusted the size of its

SET50 futures contracts to become smaller, to only

1/5 of the former contracts, enabling investors to trade

and manage their investment portfolio more easily and

with more flexibility, becoming more attractive to new

investors. As for services, TFEX initiated an exchange

for the physical products for USD futures and gold

futures. Investors of USD futures, upon the maturity

of their futures contracts, can exchange the contracts

for the US dollars at Krungthai Bank. Traders of gold

futures can exchange for gold bullions at the seven

major gold traders in Thailand, namely Globlex Holding

Management pcl, Classic Gold Futures Co., Ltd., GT Gold

Bullion Co., Ltd., YLG Gold Co., Ltd., Ausiris Co., Ltd., MTS

Gold Co., Ltd., and Hua Seng Heng Commoditrust Co., Ltd.