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05 Mar 2018 18:16:00
TFEX News :TFEX and alliances jointly continues rubber futures development
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          TFEX News 3/2018
                  March 5, 2018

TFEX and alliances jointly continues rubber futures development

Bangkok, March 5, 2018 - Thailand Futures Exchange PCL (TFEX), Rubber Authority 
of Thailand (RAOT), The Thai Rubber Association (TRA) and TFEX's members, today
have announced their collaboration in developing rubber futures and encouraging
investors and entrepreneurs to utilize the product more effectively. They will
focus on providing knowledge, boosting liquidity while also minimizing trade

In addition, three rubber entrepreneurs and five TFEX members have signed a 
memorandum of understanding (MoU) to facilitate RSS3D Futures trading and
physical deliveryprocess. This is a continuing effort to develop the rubber
futures after it was launched in 2016.

TFEX Managing Director Rinjai Chakornpipat stated that this collaboration aims 
to promote entrepreneurs and investors to utilize the rubber futures products
for managing risks and investment portfolio, boost trading liquidity, and push
RSS3D Futures to be a reference price for rubber trading. This is the starting
point in supporting the growth of rubber futures further and create benefits to
all related parties.

RAOT Governor Titus Suksaard said that RAOT, as a central organization for the 
administration and management of rubber in Thailand, has developed rubber market
in many aspects and cooperated with entrepreneurs to set up a fund for spot and
futures markets to ensure the price stability of rubber. RAOT has jointly
formed Regional Rubber Market (RRM) with Malaysia and Indonesia, while also
conducting a feasibility study of introducing US dollar-denominated rubber
trading, with an aim to push Thailand's rubber price as an international price

TRA Secretary General Bundit Kerdvongbundit said that the cooperation between 
rubber entrepreneurs and TFEX members under the MoU aimed to build confidence to
investors for trading rubber futures in TFEX, easing physical rubber delivery
concerns and drawing interested investors to learn and utilize more on rubber

Suntree Kiattipongthaworn, Senior Executive Vice President of Derivatives, KT 
Zmico Securities Co., Ltd. - one of TFEX members  that signed the MoU - said
that after TFEX has launched RSS3D Futures, some investors are still not
familiar and concerned about the delivery process of physical rubber. Thus, TFEX
and its members have been focusing on providing knowledge about the product and
benefits to investors and entrepreneurs. We have been offering researches and
trading tools to facilitate investors, and seeking method to relieve their
concerns which led to this MoU signing.
The MoU which has been signed by three entrepreneurs consisting of Thai Hua 
Rubber pcl, Von Bundit Co., Ltd. and Sri Trang Agro-Industry pcl, including
TFEX's five brokers namely Classic Ausiris Futures Co., Ltd., KT Zmico
Securities Co., Ltd., Trinity Securities Co., Ltd., MTS Gold Future Co., Ltd.,
and Aira Securities pcl. More rubber entrepreneurs and futures brokers are
expected to join collaborative programs in the future.

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