Thailand Futures Exchange Temporarily Halts Gold Futures Trading as the Yellow Metal Dives

With the sudden downfall in the price of Gold; the Thailand Futures Exchange , TFEX, has decided to suspend trading of all Gold and Silver Futures series for a certain period, from 9.45 a.m. of April 17, 2013 on wards.

TFEX will recommence the trading of all Gold and Silver Futures series from 10:15 a.m. The Pre-open session will start from 10:05 a.m. until 10:15 a.m.

(10 minutes before all Gold and Silver Futures resumption.).

In addition, the daily price limit of all Gold and Silver Futures series will be expanded to no more than +/- 20% of the latest settlement price. Therefore, today’s ceiling and floor prices of all Gold and Silver Futures series will be limited at no more than +/- 20%.

Thailand’s Gold derivatives are popular financial instruments among retail and institutional investors. According to figures released by the TFEX, in 2012 Local Institutional investors made up 50.67% of trade volumes and 46.12% of retail investors.

TFEX offers two Gold futures contract, the 10 Baht contract and the 50 Baht contract, both having a purity of 96.5%.

The Thai exchange has around 42 broker members and 7 Market Makers for Gold futures including; Globlex Securities Co., Ltd., Trinity Securities Co., Ltd., Thanachart Securities PCL, Ausiris Futures Co.,Ltd. and MTS Gold Futures Co., Ltd, YLG Bullion & Futures Co., Ltd. and Hua Seng Heng Gold Futures Co., Ltd.

Gold suffered an 8% move in the international markets on the back of European debt issues.