1 AIT Asian Institute of Technology

The potential to develop a financial derivatives market in Thailand

AuthorTippawan Pinvanichkul
Call NumberAIT RSPR no. SM-95-28
Subject(s)Derivative securities--Thailand

NoteA research submitted in partial fulfillment of the requirement for the degree of Master of Business Administration
PublisherAsian Institute of Technology
AbstractThis research looks in to two different aspects of derivatives-derivatives principles and the operation of a well-implemented derivatives exchange. Based on these understandings and a survey of derivatives market in Thailand, the feasibility of establishing a derivatives market is carried out. A general recommendation is made for the basic structure of the exchange and the potential products to be introduced. The study starts with a brief discussion of the derivatives principles. The various derivatives products, the uses of these products, the associated risks and benefits of using the derivatives activities are briefly explained. Some historic instances are cited to highlight the losses associated with derivatives products. A survey is conducted on the practice of March a Terme des Instruments Financiers (MATIF) which is considered as one of the most well developed, highly organized and successfully implemented futures and options exchange in the world. The results of the survey are discussed to give a better understanding of the operations of an organized derivatives market. The general exchange operations are summarized into two aspects: market independence and the exchange structure. A survey was carried out on the current derivatives dealings and the OTC market operations in derivatives in Thailand. Based on the survey result, the potential to establish the futures and options exchanges of Thailand was determined. All these findings lead to recommendations on initiation of the exchange, on the potential types of products to be listed and the exchange structure. However, products specification and regulatory reformation are not considered here. Finally the study comes to the conclusion, based on the study of various aspects of derivatives, that although Thailand has a potential to develop the derivatives market, the time to establish an organized exchange should be considered carefully.
Year1994
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Gupta, Jyoti P.;
Examination Committee(s)Pandey, Indra M.;Spieser, Philippe;
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 1994


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