Developing a financial derivatives exchange in Thailand after the financial crisis | |
| Author | Parisa Phakdurong |
| Call Number | AIT RSPR no. SM-99-49 |
| Subject(s) | Financial crises--Thailand Derivative securities |
| Note | A research study submitted in partial fulfillment of the requirement for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | This research focuses on the potential issues concerning development of the financial derivative exchange in Thailand after financial turmoil. As we have the proposition that the needs for risk management should increase more than before. Therefore, we have to conduct the derivative survey to verify and find out some evidences to supporting this proposition. In addition, this study indicates the potential benefits and the relevant issues of developing the successful derivative exchange and makes general recommendations for the basic structure of the market and the potential products to be traded. The research starts with a brief discussion for derivative principles and associated risks. The various derivative products and the current Thailand economic are briefly explained. This study referred to the financial derivative in Taiwan (T AIMEX) in order to illustrate the recently developed of a derivative exchange in this region. A derivative survey focuses on two groups, users and regulators/developer. The financial and non-financial institutions are considered as the major participants in this exchange. The Securities and Exchange Commission and the Stocks Exchange of Thailand are included as the main regulator/developer. The results of the survey are discussed to give the better understanding of the factors leading to increasing demand of risk management services after financial crisis. Moreover, it makes clearly evidences to support the establishing derivative exchange plan of Thai Authority. These evidences are shown in the explanation of potential benefits from setting up this market. However, the interview results also indicate the relevant issues for developing the successful exchange in Thailand. All of these finding lead to the recommendations of the Thai financial derivative exchange/clearinghouse structures and regulatory framework in the initial stage. They also lead to indicate the initial products for potential trading. Finally, the study comes to the conclusion, based on the study of various aspects of derivatives, that Thailand has a potential to develop the derivative market and if it develops into the successful and liquid market, it will have the economic multiplier effects to the local economy. |
| Year | 1999 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Gupta, Jyoti P.; |
| Examination Committee(s) | Tang, John C.S.;Ramachandran, N.; |
| Scholarship Donor(s) | Asian Institute of Technology Partial Scholarship; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1999 |