The Ministry of Finance is ready to advance the upgrade of the Thailand Futures Exchange (TFEX). to keep up with changes in the global finance and investment landscape and to meet Thailand’s "New Economic Vision." This vision requires a multifaceted and comprehensive approach. The upgrade aims to strengthen the green economy and digital economy dimensions more concretely through improving and adding "underlying products/variables" under the Futures Act B.E. 2546 (2003). This will diversify and broaden Thailand's derivatives market to attract investors, all within a regulatory framework that better protects investors.
Deputy Prime Minister and Minister of Finance, Ekniti Nitithanprapas, said “Today, derivatives markets worldwide are no longer limited to traditional products but have evolved to include new assets reflecting the 'real economy' and 'new forms of risk,' ranging from carbon to digital assets. As Thailand moves toward a low-carbon and digital economy, having risk management tools and products that respond to these new economic opportunities is an important financial infrastructure. Therefore, the Ministry of Finance, together with the SEC, is upgrading the framework for products and underlying variables to be internationally competitive, transparent, and protective of investors, enabling Thailand to compete and grow sustainably.”
Under this upgrade principle, the Ministry of Finance and the SEC agree to elevate TFEX to support key future products.
1. Upgrade "carbon credits" from being just an underlying variable to a "deliverable underlying product," enabling trading with either physical delivery or cash settlement. This moves carbon from a policy concept to a practical market mechanism.
2. Add "greenhouse gas emission allowances" and "renewable energy certificates (REC)" as underlying products to support the drive toward Net Zero and systematically promote a low-carbon economy.
3. Include "digital assets" (cryptocurrencies and digital tokens) as underlying products to ensure regulatory coverage of related businesses and support both domestic and international investments in line with market growth.
4. Add indices on underlying variables (foreign exchange, interest rates, freight rates) and indices on underlying products to cover all relevant indices comprehensively and better reflect market conditions.
5. Expand the scope of some underlying products (such as products derived from crude oil refining, natural gas, or petrochemicals) to align with actual market product structures.
These improvements will enable the futures exchange to develop a wider range of products aligned with international standards and investor demand. Meanwhile, the SEC will be able to monitor, inspect, and regulate the exchange and business operators, including specifying contract details appropriately to reduce risks and impacts on investors and the capital market as a whole.
The Ministry of Finance emphasized that supporting the SEC in this effort is about strengthening Thailand’s derivatives market to move forward with the new era of investment. This balances financial innovation with investor protection to ensure TFEX can support a stable and sustainable transition to the green and digital economies.
**Note:** The actions follow principles regarding the designation of additional products and underlying variables under the Futures Act B.E. 2546 (2003).
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