TFEX issues guideline for the expiring series of gold futures and silver futures

TFEX issues guideline for the expiring series of gold futures and silver futures

25/10/2011

The Thailand’s Futures Exchange plc (TFEX), a subsidiary of the Stock Exchange of Thailand (SET), issues a guideline for the settlement of expiring series of the gold and silver futures prices in case the derivatives market has to be closed prior to the last trading day of expiring contracts, or on the last trading day.

In such case, TFEX will employ the same procedure for the expiring series but the reference prices from London Gold Market Fixing Limited will be the price on the last day the contract traded on TFEX.

“TFEX will open trading as usual. The announced guideline is to notify investors and other participants in case the market is closed on the last trading day (LTD) of expiring contracts. For instance, gold futures contracts expiring this October, if the derivative market is to be closed on its last trading day, TFEX will use the London fixing prices on the latest day that TFEX market is open to determine the final settlement price and use the foreign exchange rate sourced from Reuters on the same date,” said TFEX Managing Director Kesara Manchusree.

“TFEX has sent the above guidance to our members so that they could help explain this procedure to general investors,” Kesara concluded.

For more information, please visit www.tfex.co.th