Gold volatility boosts TFEX daily contracts far beyond target
The Thailand Futures Exchange (TFEX) expects this year's daily average transactions to hit 40,000 contracts, thanks to the volatility of gold prices, which sparked demand for gold futures.
Its previous target for this year was 20,000 contracts per day. The volume will also be boosted by oil futures, which will start trading on October 17 with minimum daily turnover of 100 contracts.
Kesara Manchusree, TFEX managing director, said futures trading totalled 41,474 contracts a day from the beginning of this year to September 28, up 122 per cent from 2010. This surpasses its estimate.
TFEX trading volume increased sharply as commodity prices were volatile in the third quarter of this year on concerns over the crises in the United States and Europe.
Gold futures recorded a sharp rise in trading volume with 17,462 contracts daily, up 335.02 per cent from last year because of volatile gold prices, an extended trading period and the start of trading of mini gold futures worth Bt10. Gold prices widely fluctuated to peak at US$1,920 per ounce, before falling to nearly $1,600 at present.
Kesara said futures trading could be slower in the fourth quarter because of unresolved debt problems in the US and Europe. Investors turn to hold cash instead of making investments, she said.
GLOBAL MARKET FEARS
