TFEX to Launch New Silver, Rubber Futures Contracts – Regulation Asia

A new cash-settled silver futures contract will launch on Monday. A Japanese rubber futures contract will launch by year-end.

The TFEX (Thailand Futures Exchange) will launch a cash-settled silver online futures contract starting from Monday (9 November), in a bid to capture the increasing popularity of silver trading and hedging.

The contract will track global silver prices and based on 99.9 percent purity silver bullion, with LBMA (London Bullion Market Association) silver used as a basis for the final settlement price.

Similar to TFEX’s gold online futures contract, silver online futures will be quoted in US dollars per troy ounce but settled in local currency with a multiplier of 3,000.

To align with TFEX precious metal contracts’ trading hours, the new contract will be available for trading until 3am local time of the following day. Margins are expected to be around THB 10,675 (USD 340) per contract, or approximately 15 percent of notional value.

“Silver price is quite volatile and it has rallied strongly this year, rising from March low to a seven year high in August due to the growth in both investment and industrial demand,” said TFEX managing director Rinjai Chakornpipat in a Bangkok Post report.

“Silver Online Futures also resembles the key features of TFEX Gold Online Futures, where there will be no exchange rate risk and will be settled in Thai baht.”

Rinjai said TFEX will appoint two securities firms to manage contract liquidity.

The silver futures contract specifications are available here.

TFEX is also preparing to release Japanese rubber futures by the end of the year, a contract based on third-class smoked sheet rubber that trades on the TSE (Tokyo Commodity Exchange).

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