Thailand Futures ExchangeThailand Futures ExchangeThailand Futures Exchange

AgendaAgenda

1

1) Thai Capital Market Highlights

2) TFEX at a Glance

3) Recent Development

4) Statistic Highlights

5) Product Details

SET50 Futures

SET50 Options

Gold Futures

Single Stock Futures

Interest Rate Futures

Thai Capital Market HighlightsThai Capital Market Highlights

2

Billion Baht

Bn. USD 237

Points

Stock Market Capitalization and IndexStock Market Capitalization and Index

Aug 2010

2009200820072006200520042003200220012000

(End period value)

Source : SETSMART

Unit: Million Baht

Aug 2010

2009200820072006200520042003200220012000

Average daily turnover at SETAverage daily turnover at SET

Source : SETSMART

Source: WFENote: Market Capitalization as of July 31, 2010.

** Share Turnover Velocity is calculated by {Share Turnover (of July 2010)/Market Capitalization (at end of July 2010)}*12

Thai Capital MarketThai Capital Market’’s Presence in ASIAs Presence in ASIA

Share Turnover Velocity**

Unit: Percentage

Market Yield

Unit: Percentage

(% Growth YTD)

Source : Bloomberg

Index Performance of Thai Stock Market Index Performance of Thai Stock Market Compared with Other CountriesCompared with Other Countries

(data as of 31 December 2009 and 31 August 2010)

7

TFEX : At a glanceTFEX : At a glance

8

Operates under the Derivatives Act B.E. 2546 (2003) andis under supervision of the Thai Securities and Exchange Commission (SEC).

Licensed to be a central marketplace for derivatives trading whose underlying assets include equities, fixed income instruments, interest rates, foreign currencies, and non-agricultural commodities

Is a wholly owned subsidiary of the Stock Exchange of Thailand (SET)

Started its operation on April 28, 2006 with SET50 Index Futures as the first product.

About TFEXAbout TFEX

9

Paid up capital 100 Million Baht Paid up capital 100 Million Baht

TFEX Ownership StructureTFEX Ownership Structure

The Stock Exchange of Thailand

99.99% 99.99%

Thailand FuturesThailand Futures Exchange PLCExchange PLC Thailand Clearing House Co., LtdThailand Clearing House Co., Ltd.

10

Trading in TFEX (1)Trading in TFEX (1)

TRADINGTRADING

Reliable electronic integrated trading & clearing platforms with proven state-of-the-art technologydeveloped by OMX Technology, successfully implemented in 26 countries worldwide

Trading could be easily done through 41 leadingThai & international houses as TFEX brokerage

members.

Investors could place orders directly with TFEX member or through the member’s internet services.

TFEX allows its broker members offering direct market access (DMA) to their clients. DMA permits investors to connect their trading applications with

a broker’s front-end system, thus enabling a client’s

order to be routed automatically through the broker and on to the Exchange without being handled manually

Integrated Trading & Clearing PlatformsIntegrated Trading & Clearing Platforms

11

Buying Broker Selling Broker

Buying Client Selling Client

Clearing Member (Buying Broker)

Clearing Member (Selling Broker)

12

TRADINGTRADING

Registered Market Maker for options and futures products are appointed to provide liquidity and ensure the confidence of investors.

There are no trading restrictions on foreign investors in TFEX, nor is there any necessity for special or qualified foreign institutional investor’s accounts.

To ease foreign investors’ trading in the Thai futures market, TFEX allows these investors to use an omnibus account which is treated as a regular account, except for margin calculation, which is done on a gross basis.

Capital gain from trading in TFEX for retail investors aretax exempted. Foreign institution investors are subject to 15% withholding tax on capital gains made from tradingin TFEX. Foreign investors whose home countries maintain double taxation agreements with the Kingdom of Thailand are subject to 10% withholding tax.

Trading in TFEX (2)Trading in TFEX (2)

13

TFEXTFEX-- ClearingClearing

All contracts traded in TFEX are settled and cleared by

Thailand Clearing House (TCH), one of the subsidiaries

of the SET.

Rigorous risk management tools and financial

monitoring program have been put in place to ensure

the integrity of clearing system.

The margin calculation is based on the OMX Risk

Evaluation System (RIVA), which employs the concept

of portfolio margining.

CLEARINGCLEARING

Safeguard of the Clearing House (1)Safeguard of the Clearing House (1)

14

Member Member ContingentContingent

LiabilityLiability

Member Member ClearingClearing

FundFund

Safeguard of the Clearing House (2)Safeguard of the Clearing House (2)

Product Road MapProduct Road Map

16

17

TFEX : Recent DevelopmentTFEX : Recent Development

Recent DevelopmentRecent Development

18

Foreign Currency as Collateral

New product : Mini Gold Futures (Aug, 2010)Mini Gold Futures (Aug, 2010)Interest Rate Futures:Interest Rate Futures:

5Y Gov Bond Futures (Oct 18, 2010)5Y Gov Bond Futures (Oct 18, 2010)

6M THBFIX Futures (Nov, 2010)6M THBFIX Futures (Nov, 2010)

3M BIBOR Futures (Nov, 2010)3M BIBOR Futures (Nov, 2010)

Negotiated Large Trade Facility

Extended Trading Hours

Foreign Currency as CollateralForeign Currency as Collateral

19

Buying Broker

Selling Broker

•• At present, only stocks and cash are allowed.At present, only stocks and cash are allowed.

••By Q4 2010 TCH will allow foreign currencies By Q4 2010 TCH will allow foreign currencies

to be pledged as margin. First phase, only to be pledged as margin. First phase, only

USD and Euro will be allowed. USD and Euro will be allowed.

20

Negotiate Large Trade (Block Trade)Negotiate Large Trade (Block Trade)Facilitates clients’ need to execute large order at a single known price.

Enhances the market efficiency through increased liquidity, improved execution quality and lower market transaction costs for large orders.

Products Minimum volume to be eligible for NLT

SET50 Index Futures 100

SET50 Index Options 500

Single Stock Futures 500

Gold Futures 100

Bond Futures 25

Short-term Interest Rate Futures 25

Extended Trading HoursExtended Trading Hours

21

Market Opens : Morning Session

Night Session Starts

9:15

12:30

Market Closes : Morning Session

14:00

Market Opens : Afternoon Session

Market Closes : Afternoon Session

16:55

Normal Session

Extended Session

Night Session Closes

The night session will be applied to the Futures on global commodity trading. It is expected to implement in mid 2011

22

TFEX : Statistical HighlightsTFEX : Statistical Highlights

23

One of the Fastest Growing Market in AsiaOne of the Fastest Growing Market in Asia

Trading Volumes on TFEX since 2006 has grown 90s percent on averTrading Volumes on TFEX since 2006 has grown 90s percent on average. age.

Statistical HighlightsStatistical Highlights

24

Total Market VolumeTotal Market Volume

Daily Average Trading Volume

1,201

5,219

8,837

12,771

15,941

‐

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2006 2007 2008 2009 2010 (As of Aug2010)

Contracts/Day

25

Key Statistics Highlight on 2010Key Statistics Highlight on 2010

Data as of August 2010

Market Trading Volume for each product

26

Top 10 Most Active BrokersTop 10 Most Active Brokers

Broker Ranking

2009 2010 (As of Aug 2010)

RankBroker

Mkt. Share

(%)Broker

Mkt. Share

(%)

1 KIMENG 10.75% GLOBLEX 12.84%

2 PHILLIP 9.80% PHILLIP 8.47%

3 KGI 7.78% KIMENG 8.44%

4 TRNITY 7.46% TRNITY 6.30%

5 GLOBLEX 7.26% KGI 5.62%

6 PHATRA 4.48% PHATRA 4.75%

7 BUALUANG 3.93% ASIA PLUS 4.70%

8 ASIA PLUS 3.48% KTZIMECO 4.37%

9 THANACHART 3.42% COUNTRY 3.27%

10 KT ZIMECO 3.21% BUALUANG 2.92%

27

TFEX: Product InsightTFEX: Product Insight

SET50 Index Futures SET50 Index Futures

28

SET50 Index Futures : Price Movement SET50 Index Futures : Price Movement

29

SET50 Index Futures is the effective trading and hedging instrument for Thai capital market. The underlying benchmark, SET50 index, is the 50 largest and most liquid stocks listed on the SET.

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SET50 Index Futures : SET50 Index Futures : Trading VolumeTrading Volume--Volatility Relationship Volatility Relationship

SET50 Index OptionsSET50 Index Options

SET50 Index Options SET50 Index Options

32

Single Stock FuturesSingle Stock Futures

33

Thomson Reuters 0#TFX-SSF:,ADVANCfxmy, BANPUfxmy,

BAYfxmy, BBLfxmy, ITDfxmy,

KBANKfxmy, KTBfxmy, LHfxmy, PTTfxmy,

PTTEPfxmy, QHfxmy,

SCBfxmy, SCCfxmy, TTAfxmy

Bloombergs SFUT TB<GO>

Price Information

The Underlying StocksThe Underlying Stocks

34

Stock Sector Market Capitalization (M.Baht)

KTB Financials 160,988.39

ITD Property & Construction 14,342.38

LH Property & Construction 61,158.12

QH Property & Construction 20,176.07

TTA Services 17,133.71

PTTEP Resources 475,964.40

PTT Resources 752,352.52

Stock Sector Market Capitalization (M.Baht)

BAY Financials 132,416.33

BANPU Resources 166,309.69

SCC Property & Construction 355,200.00

BBL Financials 281,554.33

KBANK Financials 259,668.73

SCB Financials 323,128.42

ADVANC Technology 273,741.56

Trading Volume by the Underlying StockTrading Volume by the Underlying Stock

35

Gold FuturesGold Futures

36

10 Baht Gold FuturesGF10my0#GF10:.GF10TVO.FX

Thomson Reuters50 Baht Gold Futures

GFmy0#GF:

.GFTVO.FX

10 Baht Gold FuturesTMDA <COMDTY>

TMDmy <COMDTY>

Bloombergs

50 Baht Gold FuturesTGBA <COMDTY>

TGBmy <COMDTY>

Price Information

Thomson Reuters Thai Baht PM Fixing <THBFIXP=>

Gold Futures: Price Movement Gold Futures: Price Movement

37

Gold Futures: Gold Futures: Hedging and Profitable InstrumentsHedging and Profitable Instruments

38

TFEXTFEX’’ss Gold Futures Gold Futures not only minimizes not only minimizes market risk for the market risk for the bullions holders bullions holders but also enhances the but also enhances the portfolio profitability portfolio profitability for investors. for investors. Trading volume Trading volume grows exponentially grows exponentially within one year after within one year after inaugurating on inaugurating on Feb 2, 2009. Feb 2, 2009.

5 Years Government Bond Futures5 Years Government Bond Futures

39

Thomson Reuters TGB5my 0#TGB5:

.TGB5TVO.FX

Bloombergs TOBA comdty <GO>

Price Information

Launch date Launch date 18 October 201018 October 2010

Basket of Eligible Bonds Basket of Eligible Bonds

40

Criteria for the eligible bondsMust have outstanding value at least 5000 million BahtWithin 4-6 years of maturity on the first day of the calendar month e.g. December 2010 series must have TTM at least 4 years and not more than 6 years on Dec 1, 2010

Announcement of the basket of the eligible bondTFEX will announce the list of the Eligible Bonds before the Bond Futures start trading at least 7 daysThe detail of the eligible bonds will be disseminated to all participants and also published on TFEX website : www.tfex.co.th

Issue Code Maturity date Coupon (%) ISIN Code

LB14DA 03/12/2014 5 TH062303OC00

LB155A 22/05/2015 3.625 TH062303P508

LB157A 07/07/2015 7.2 TH062303P706

LB15DA 11/12/2015 3.125 TH062303PC09

LB167A 27/07/2016 5.4 TH062303Q704

LB16NA 18/11/2016 4.125 TH062303QB09

Issue Code Maturity date Coupon (%) ISIN Code

LB155A 22/05/2015 3.625 TH062303P508

LB157A 07/07/2015 7.2 TH062303P706

LB15DA 11/12/2015 3.125 TH062303PC09

LB167A 27/7/2016 5.4 TH062303Q704

LB16NA 18/11/2016 4.125 TH062303QB09

LB171A 18/01/2017 5.5 TH062303R108

Contract Dec10Contract Dec10 Contract Mar11Contract Mar11

Final Settlement PriceFinal Settlement Price

41

The method of Final Settlement Price calculation :

Obtain Bid-Offer yield quotation from Primary Dealers.

Disregard a highest and lowest Bid and Offer rate and calculate the mid range for each eligible bonds.

Compute the final yield by averaging the mid range yield of eligible bonds (with 4 decimal points).

Convert the final yield to final settlement price (with 4 decimal points).

@ Last Trading Day

Trad

ing

Hou

rsA

fter T

radi

ng H

ours

(afte

r 16.

00)

Quote Price / Yield of Bond each symbol in the Basket Bond Dealers

Example

1. The Basket contains 3 bonds2. 9 PDs quote yield both Bid and Offer 3. Cut off Max. & Min. of Bid of each bond4. Cut off Max. & Min. of Offer of each

bond5. Simple average Bid/Offer of each bond6. Simple average all average Bid/Offer

rate of each bond again to find the Final Yield with 4 decimal points

7. Calculate the Settlement Price with 4 decimal points from the Final Yield

Bond 1 Bond 2 Bond 3Bid 1 3.2800% 3.1900% 3.3300%Bid 2 3.5935% 3.4000% 3.4200%Bid 3 3.6210% 3.4300% 3.5800%Bid 4 3.6800% 3.4710% 3.6500%Bid 5 3.6900% 3.5435% 3.7310%Bid 6 3.8300% 3.5800% 3.7400%Bid 7 3.8700% 3.5900% 3.8400%Bid 8 3.9400% 3.8400% 3.8800%Bid 9 3.9540% 3.9200% 3.9854%

Offer 1 3.0100% 3.0100% 3.0300%Offer 2 3.1400% 3.0800% 3.0900%Offer 3 3.1400% 3.0900% 3.1200%Offer 4 3.1410% 3.1100% 3.1400%Offer 5 3.1500% 3.1100% 3.1750%Offer 6 3.1500% 3.2600% 3.1900%Offer 7 3.1570% 3.3100% 3.2510%Offer 8 3.1572% 3.3400% 3.2770%Offer 9 3.1600% 3.3600% 3.3990%

Average 3.447121% 3.368179% 3.434571% 3.416624%

Final Yield 3.4166%

Final Settlement Price Final Settlement Price -- 5Y Gov Bond Futures5Y Gov Bond Futures

6 Months THBFIX Futures6 Months THBFIX Futures

43

Thomson Reuters

TBF6my0#TBF6:

.TBF6TVO.FX

Bloombergs TXBA comdty <GO>

Price Information

Launch by Launch by Q4 2010 Q4 2010

3 Months BIBOR Futures3 Months BIBOR Futures

44

In the process of the SEC approval

Launch by Launch by Q4 2010 Q4 2010

Short Term Interest RateShort Term Interest Rate

45

6M THBFIX6M THBFIX(Implied Thai Baht Fixing Rate)

3M BIBOR3M BIBOR(Interbank Rate)

Calculates from the quoted rate of Calculates from the quoted rate of the contributorsthe contributors

Calculates from the quoted rate of Calculates from the quoted rate of the contributorsthe contributors

Short Term Interest Rate : MethodologyShort Term Interest Rate : Methodology

46

6M THBFIX6M THBFIX(Implied Thai Baht Fixing Rate)

3M BIBOR3M BIBOR(Interbank Rate)

THBFIX = ({([1+FWD/SPOT]x[1+(SIBOR x DAYS /360)])THBFIX = ({([1+FWD/SPOT]x[1+(SIBOR x DAYS /360)])--1}x 365/DAYS) x1001}x 365/DAYS) x100where where •• FWDFWD = average forward rate of each tenor divided by 100= average forward rate of each tenor divided by 100•• SPOTSPOT = average spot rate= average spot rate•• SIBORSIBOR = US interest rate for the respective tenor divided by 100= US interest rate for the respective tenor divided by 100•• DAYSDAYS = number of days for each tenor= number of days for each tenor

Note: the average rates of FWD and SPOT are calculated from theNote: the average rates of FWD and SPOT are calculated from the quoted rates from the contributors after quoted rates from the contributors after eliminating the top and bottom quartiles.eliminating the top and bottom quartiles.

The simple average rate of the quoted rates after The simple average rate of the quoted rates after eliminating the top and bottom quartiles of the eliminating the top and bottom quartiles of the quoted rates.quoted rates.

The Underlying Rates Movement since 2008The Underlying Rates Movement since 2008

47

%

Exchange Fee Promotion: 1 Oct Exchange Fee Promotion: 1 Oct –– 31 Dec 201031 Dec 2010

48

Product Minimum Volume* (Contracts per Month)

Fee Discount (%) Note

5,000 5%

10,000 10%

20,000 20%

30,000 30%

SET50 Futures

50,000 50%

For the 1st ranking Broker which trades

more than 60,000 contracts in each

month will get 90% discount on the Exchange Fee

Stock Futures

Total trading volume of SSF and SET50 Index Option combined more than 2,000 contracts and each product must be at least 200 contracts

100% -

Commissions for all TFEX products are freely negotiated

Clearing House Margin RateClearing House Margin Rate

49

Products Outright Inter-month Spread

Index Futures

SET50 Index 24,000 6,000

Gold Futures

50 Baht Gold 30,000 7,500

10 Baht Gold 6,000 1,500

Single Stock Futures

BAY 1,400 350

BBL 7,000 1,750

KBANK 6,000 1,500

KTB 800 200

SCB 5,000 1,250

SCC 13,000 3,250

BANPU 32,000 8,000

Products Outright Inter-month Spread

Single Stock Futures

PTT 14,000 3,500

PTTEP 8,500 2,125

ADVANC 4,500 1,125

LH 500 125

ITD 300 75

QH 200 50

TTA 2,000 500

Interest Rate Futures

5Y Gov Bond 6,000 1,500

Unit : Baht

Index Options Short Options Minimum Charge

SET50 Index 500

Data as of 1 October 2010

50

AppendicesAppendices

51

TFEX Members: TFEX Members: 36 General Members & 5 Gold Related Agents36 General Members & 5 Gold Related Agents

General MemberGeneral MemberACL Securities Co., Ltd.

Aira Securities Public Company Limited

Asia Plus Securities Public Company Limited

Ayudhya Securities Public Company Limited

Bualuang Securities Public Company Limited

BFIT Securities Public Company Limited

Country Group Securities Company Limited

CIMB Securities (Thailand) Co., Ltd.

CLSA Securities (Thailand) Limited

Capital Nomura Securities Public Company Limited

Credit Suisse Securities (Thailand) Limited

DBS Vickers Securities (Thailand) Co., Ltd.

Far East Securities Company Limited

Finansa Securities Limited

Finansia Syrus Securities Public Company Limited

Globlex Securities Company Limited

I V Global Securities Public Company Limited

JPMorgan Securities (Thailand) Limited

Kim Eng Securities (Thailand) Public Company Limited

KGI Securities (Thailand) Public Company Limited

Kiatnakin Securities Co.,Ltd.

General MemberGeneral MemberKasikorn Securities Public Company Limited

KT ZMICO Securities Company Limited

Merchant Partners Securities Public Company Limited

Phatra Securities Public Company Limited

Phillip Securities (Thailand) Public Company Limited

SCB Securities Co., Ltd.

Siam City Securities Co.,Ltd.

SICCO Securities Public Company Limited

Trinity Securities Company Limited

Thanachart Securities Public Company Limited

TISCO Securities Co., Ltd.

UBS Securities (Thailand) Limited

UOB Bullion and Futures (Thai) Limited

UOB Kayhian Securities (Thailand) Public Company Limited

United Securities Public Company Limited

Gold Related Agent MembersGold Related Agent Members

Ausiris Futures Co.,Ltd.Ausiris Futures Co.,Ltd.

GT Wealth Management Co.,Ltd.GT Wealth Management Co.,Ltd.

Hua Seng Heng Gold Futures Co.,Ltd. Hua Seng Heng Gold Futures Co.,Ltd.

MTS Gold Futures Co.,Ltd. MTS Gold Futures Co.,Ltd.

YLG Bullion & Futures Co.,Ltd.YLG Bullion & Futures Co.,Ltd.

Tax TreatiesTax Treaties

52

Thailand has double taxation agreements with 54 countries. Thailand has double taxation agreements with 54 countries. Institutional investors from 28 countries or regions specified bInstitutional investors from 28 countries or regions specified below elow are exempted from capital gain taxes.are exempted from capital gain taxes.

1) Bangladesh 11) Israel * 21) Slovenia *

2) Belgium 12) Italy 22) South Africa

3) Canada * 13) Kuwait 23) Spain *

4) Cyprus * 14) Laos 24) Switzerland *

5) Denmark 15) Mauritius 25) Turkey *

6) France * 16) Netherlands * 26) The United Arab Emirates

7)Germany 17) Norway 27) United Kingdom & North Ireland *

8) Hong Kong 18) Oman 28) Uzbekistan *

9) India 19) Pakistan

10) Indonesia 20) Singapore* conditions applied.conditions applied.

Data as of September 2010