The Stock Exchange of Thailand (SET) starts trading the first five derivative warrants on SET50 index scheduled to be launched today, underlining SET’s commitment to provide various products to meet investor demands. Proportion of DW trading accounts for 2.74 percent of the total securities trading value, comparatively higher than those of other key markets in the region.
SET Executive Vice President Kesara Manchusree said the newly-launched five derivative warrants on SET50 index would be an investment choice for investors to manage their portfolios more efficiently and effectively, in line with international markets. Of the total five DWs, four would be launched by Macquarie Securities (Thailand) Limited and the other one by KGI Securities (Thailand) pcl.
The introduction of the DW on SET50 followed SET’s 2013 announcement to add more underlying assets for DWs, such as DW covering stocks in the SET100 index with market capitalization of at least THB 10,000 million, exchange-traded funds tracking SET index series as well as the SET index series. The new DW launch was a result of an attempt of SET together with Investment Banking Club of Association of Securities Companies and the Securities and Exchange Commission (SEC) that jointly considered the terms and conditions of DW on SET index series. Consequently, the SEC approved this terms and conditions document in late March.
“First-quarter trading of DWs was worth THB 48.32 billion (approx. USD 1.49 billion) in total, or 2.74 percent of the total securities trading value, the highest proportion compared to other markets such as Korea, Malaysia, Singapore and Taiwan. The trading proportion has risen continuously from 2.10 percent in 2013 and 0.95 percent in 2012. End of the first quarter of this year, there were 637 existing DWs on the market. Of that, 328 were new DWs launched in the period, up 74 percent from a year ago when there were only 188 new DWs launched,” Kesara added.
To familiarize investors with the index DW, SET has joined hands with DW issuers to organize a seminar for investors later this month. For more information, please visit www.set.or.th .