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TheAgriculturalFuturesExchange

ofThailand(AFET)

Peerapon Prasertsri

May 23th, 2011


The Agricultural Futures Exchange of Thailand

AFET
Profile&Overview

Thailandasoneofthemostimportantagricultural
producersintheworld
Thailand's World Rank
Agricultural
Commodity

Production

Exports

Natural Rubber*

#1st

#1st

Rice**

#6th

#1st

Tapioca***

#2rd

#1st

*Rubber Research Institute of Thailand, 2009


**USDA, 2009
***FAO, 2009

Profile&Overview
EstablishedinaccordancewithThailandAgriculturalFuturesTrading
Act,B.E.2542
EstablishedasThailandsexclusiveexchangefortradingoffutures
contractinagriculturalcommoditieswithitsownClearinghouse
facility
100%electronic;Tradinghours:10:00 15.45(GMT+07:00)
Markets:Rubber(RibbedSmokedSheetNo.3),Rice(WhiteRice5%
andThaiHom MaliRice),andTapioca(TapiocaChip)
RegulatoryAuthority:ThailandAgriculturalFuturesTrading
Commission

The Agricultural Futures Exchange of Thailand

RegulatoryStructure
Rule and Regulations
AgriculturalFuturesTradingActB.E.2542

Regulator
TheAgriculturalFuturesTradingCommission(AFTC)
chairedby theMinisterofCommerce

Exchange
AFET
BoardofDirectorscomprise
5PersonsAppointedbytheAFTC,
5PersonsElectedbyMembers,and
PresidentbeinganExofficioDirector

Futures Trading Business


Trader/Broker/TradingAdvisor/
Agent/PoolBusinessOperator

Customer
Hedgers/Speculators

The Agricultural Futures Exchange of Thailand

AFETVision
Tobeoneofthesuccessfulcommodityexchangein
ASEANwhereitspricesarewellinternationalized
benchmarking

The Agricultural Futures Exchange of Thailand

ProductsListedontheAFET
Ribbed Smoked Sheet
No.3 (RSS3)
28 May 2004

White Rice 5%
(BWR5)
1 Apr 2008

18 Aug 2005
Tapioca Chip (TC)

The Agricultural Futures Exchange of Thailand

White Rice 5%
FOB (WRF5)
28 Apr 2011

14 July 2009
Thai Hom Mali
Rice (BHMR)

OverallAFETVolumeandValue,2004 2010
250,000

200,000

150,000

100,000

50,000

2004

2005

2006

2007

2008

2009

2010

Volume(Contract)

28,556

84,644

112,859

89,966

149,426

210,833

129,533

Value(millionbaht)

57,772

22,133

38,818

29,933

59,341

71,727

70,156

The Agricultural Futures Exchange of Thailand

AFET Trading Volume 2010

White Rice

Tapioca
0%

3.5 %
4,597 contracts

0 contracts

129,533
contracts
Thai Hom Mali Rice
0.02 %
32 contracts

Rubber
96.4%
124,904 contracts

AFETFuturesContractSpecification

Natural Rubber Ribbed Smoked Sheets No. 3 (RSS3)


Description:

Trading Hrs:
Contract Size:
Delivery Size:
Tick size:
Position Limits:
Last Trading Day:
Delivery Point:

Natural Rubber Ribbed Smoked Sheet No.3 (RSS3) as per


the International Standards of Quality and Packing for
Natural Rubber Grades (GREEN BOOK)
10:00 -15:45 (GMT +07:00)
5,000 kg. (5 metric tons)
20,000 kg. (20 metric tons)
0.05 Baht / Kg
3,000 contracts for all contract months and 200 contracts
for delivery month
3rd business day before the first day of delivery month
FOB Bangkok port

The Agricultural Futures Exchange of Thailand

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AFETRSS3:AverageDailyVolumeandValue,2004 2011
800
700
600
500
400
300
200
100
0

2004

2005

2006

2007

2008

2009

2010

2011

Avg.DailyVolume
(contract)

101

252

339

274

454

394

516

677

Avg.DailyValue
(millionbaht)

25

78

135

108

188

133

285

564

The Agricultural Futures Exchange of Thailand

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RSS3 Futures Volume by Exchange, 2010

1.81%
98.09%

0.07%

SHFE

0.02%

TOCOM

AFET

SICOM

TradinginAFET
6brokermembersand2tradermembers
Securedandefficientelectronictradingsystem
providedbyPatSystems
Easytradeaccess
ViaAFETbrokermembers
DirectlytradewithAFETasatradermember

The Agricultural Futures Exchange of Thailand

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MarketParticipants
TraderMembers

Retail

Institutions

Proprietary
Commodity
Trading

BrokerMembers

Investors
(Hedgers/Speculators)

Intermediaries

AFET
Exchange

Clearing
House

TheAgriculturalFuturesExchangeofThailand

14

ClearinginAFET
6clearingmembers
ClearingservicesareprovidedbyAFETs clearinghouse
throughPatsystems JClearTechnology
Theclearinghouseplaystheroleofguarantortothe
defaultriskofeachcontracttraded.
Clearingsystemincludes

Riskmanagement

Financialbacking

Clearing,settlement,anddeliverysystem
The Agricultural Futures Exchange of Thailand

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RecentAchievements
Playingapartofimportantroleinpricingworldrubber
price(viaAFETRSS3Futures)
BeinganalternativewayforThaiGovernmentto
distributethericestockpile

NewProductDevelopment&Idea
BlockRubber(Q311)
OTCCommodityContract

TheAgriculturalFuturesExchange
ofThailand(AFET)
15th FloorCRCTower,AllSeasonsPlace,
WirelessRoad,Lumpini,Pathuwan,
Bangkok10330
Thailand
Tel:(662)2639888Fax:(662)2519535
Email:afet@afet.or.th
Website:www.afet.or.th

The Agricultural Futures Exchange of Thailand

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AppendixA:ContractSpecification

The Agricultural Futures Exchange of Thailand

ContractSpecification
WhiteRice5%FOB(WRF5)

Description:
Contract Size:
Delivery Size:
Tick size:
Position Limits:
Last Trading Day:
Delivery Point:

Standard of White Rice 5%


As per Notification of Ministry of Commerce
50 metric tons
250 metric tons
10 Baht / ton
1,000 contracts for all contract months and 100 contracts
for delivery month
1st business day before the first day of delivery month
FOB Bangkok port

The Agricultural Futures Exchange of Thailand

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Contract Specification
WhiteRice5%BothOptions(BWR5)

Deliverable Grade Standard of White Rice 5%


Delivery Term

Trading Unit
Delivery Unit
Tick Size
Position Limit
Last Trading Day

As per Notification of Ministry of Commerce


Buyer's designated warehouse or factory in Bangkok,
Ayutthaya, Nakhon Pathom, Nonthaburi, Samut
Sakhon, Samut Prakan, Pathum Thani, Nakhon
Nayok, or Chachoengsao Provinces
15 MT (15,000 Kg.)
15 MT (15,000 Kg.)
0.01 Baht/Kg.
Spot Month: 600 contracts
Not greater than 3,000 contracts in months combined
10th business day of the delivery month

Contract Specification
Thai
Thai Hom
Hom Mali
Mali Rice
Rice 100%
100% Grade
Grade BB Both
Both Options
Options (BHMR)
(BHMR)

Deliverable Grade Standard of Thai Hom Mali Rice 100% Grade B


Delivery Term

Trading Unit
Delivery Unit
Tick Size
Position Limit
Last trading day

As per Notification of Ministry of Commerce


Buyer's designated warehouse or factory in Bangkok,
Ayutthaya, Nakhon Pathom, Nonthaburi, Samut Sakhon,
Samut Prakan, Pathum Thani, Nakhon Nayok, or
Chachoengsao Provinces
15 MT (15,000 Kg.)
15 MT (15,000 Kg.)
0.01 Baht/Kg.
Spot Month: 600 contracts
Not greater than 3,000 contracts in all months combined
10th business day of the delivery month

Contract Specification
Tapioca
Tapioca Chip
Chip Both
Both Options
Options (TC)
(TC)

Deliverable Grade Standard of Tapioca Chip


Delivery Term
Trading Unit
Delivery Unit
Tick Size
Position Limit
Last Trading Day

As per Notification of Ministry of Commerce


Warehouse designated by the buyer within the
Ayuthaya province
50 MT (50,000 Kg.)
150 MT (150,000 Kg.)
0.01 Baht/Kg.
Spot Month: 60 contracts
Not greater than 600 contracts in all months combined
10th business day of the delivery month

AppendixB:AFETs BrokerMember

The Agricultural Futures Exchange of Thailand

889, 16th Floor, Room No 163, Thai CC Tower, South


Sathorn Rd, Yannawa, Sathorn district, Bangkok 10120
Future Agri Trade
(FAT)

Tel. (662) 673-9727-30 Fax. (662) 673-9736


Website : www.fat.co.th
Online Trading : https://itrade.fat.co.th
238/10, Ratchada-Pisek Rd, Huaykwang, Huaykwang
district, Bangkok 10310

Agrow Enterprise
(AGE)

Tel. (662) 695-4888 Fax. (662) 692-6746


Website : www.agrow.co.th
Online Trading : https://online.agrow.co.th
1200, Bangna-Trad Rd, Kilometer 2.5, Bangna,
Bangkok 10260

Hong Ta Futures
(HOT)

Tel. (662) 399-2484-86 Fax. (662) 399-2489


Website : www.hongta.co.th

The Agricultural Futures Exchange of Thailand

33/84, 17th Floor, Wall Street Tower, Surawong Rd,


Suriyawong, Bangrak district, Bangkok 10500

Pattana Agro Futures


Tel. (662) 632-8826-9 Fax. (662) 632-8825
(PAF)
Website : www.pafutures.com
Online Trading : https://online.pafutures.com

Agro Wealth
(AGR)

1558/46 Bangna-Trad Rd, KM.3 Bangna, Bangna district,


Bangkok 10260
Tel. (662) 182-0234 Fax. (662) 182-0233
Website : www.agrowealth.com
Online Trading : https://www.agrtrading.com

56/21 Bisco Tower, 16A Floor, Srap Rd., Si Phraya, Bangrak


district, Bangkok 10500
DS Futures
(DSF)

Tel. (662) 637-0707 Fax. (662) 637-1072


Website : www.dsfutures.co.th
Online Trading : https://online.dsfutures.co.th

The Agricultural Futures Exchange of Thailand