TThailand hailand FFuturesutures ExExchangechange

August 10, 2005August 10, 2005

Kesara ManchusreeKesara ManchusreeManaging DirectorManaging Director

The Stock Exchange of Thailand

99.99%

99.99%

99.99%

TThailand hailand FFutures utures ExExchangechangeEstablished in 2004Established in 2004

Paid up capital USD 2.5 mln.Paid up capital USD 2.5 mln.

TThailand hailand FFutures utures ExExchangechangeEstablished in 2004Established in 2004

Paid up capital USD 2.5 mln.Paid up capital USD 2.5 mln.

TThailand hailand CClearing learing HHouseouse

Established in 2004Established in 2004Paid up capital US$ 2.5 Mil. +Paid up capital US$ 2.5 Mil. +Reserved fund from parent US$ 10 Reserved fund from parent US$ 10 MilMil

TThailand hailand CClearing learing HHouseouse

Established in 2004Established in 2004Paid up capital US$ 2.5 Mil. +Paid up capital US$ 2.5 Mil. +Reserved fund from parent US$ 10 Reserved fund from parent US$ 10 MilMil

About TFEXAbout TFEX

Mission

To be a world class exchange for the To be a world class exchange for the

trading and hedging of Thai derivatives trading and hedging of Thai derivatives

productsproducts

CommitmentOffering an efficient infrastructure to our market

participants with easy access and at a reasonable cost.

Maintaining a fair, orderly and transparent market.

Customer oriented and new products development.

Promoting knowledge based environment.

Business Strategy

Build brand awareness and image Reach and influence target marketTools:

Seminars Publications Road show

Enhance knowledge and understanding in the existing and draw attention to new products by organizing educational and promotional programs for both foreign and local investors

Simulation trading Competition

Event marketing: local& overseas

Public Relation

Public Relation

Education & Marketing

Education & Marketing

Increase product coverage & enhance liquidity

• Launch new products line including sector index futures, Bond or S-T interest rated futures and Index options & Stock options

• Launch incentive programs to attract market maker to help provide liquidity.

Internet trading , direct access

Partner with members to improve quality and expand number of sales force

Product &liquidity

Market AccessMarket Access

TFEX’s Product UniverseTFEX’s Product Universe

FuturesFutures

OptionsOptions

Options Options onon

FuturesFutures

TypeTypeTypeType UnderlyingUnderlyingUnderlyingUnderlying

EquityEquity

•IndexIndex

•IndividuIndividual al stocksstocks

EquityEquity

•IndexIndex

•IndividuIndividual al stocksstocks

DebtDebt

• Interest Interest raterate

• Bonds / Bonds / BillsBills

DebtDebt

• Interest Interest raterate

• Bonds / Bonds / BillsBills

OthersOthers

•CurrencCurrencyy

•GoldGold

•Crude Crude oiloil

•Etc.Etc.

OthersOthers

•CurrencCurrencyy

•GoldGold

•Crude Crude oiloil

•Etc.Etc.The first product will be SET50 Index FuturesThe first product will be SET50 Index Futures

Bond/interest rate futures, index and stock options Bond/interest rate futures, index and stock options are planned to launched during the first two yearsare planned to launched during the first two years

TFEX memberTFEX member

• The first brokerage membership opportunity The first brokerage membership opportunity in TFEX was announced in late May this year.in TFEX was announced in late May this year.

• The first group of brokerage members will be The first group of brokerage members will be clearing members.clearing members.

• The final list of TFEX member will be The final list of TFEX member will be announced in late August.announced in late August.

• Incentive program for liquidity provider will Incentive program for liquidity provider will soon be launch to attract those who wish to soon be launch to attract those who wish to make maket in TFEX.make maket in TFEX.

Our Product HighlightOur Product Highlight

• Representative of Thai investable stocks.

• Based on the top 50 listed companies

which are most liquid and largest in size.

• Highly correlated with SET index.• Command 70% of total market

capitalization and cover 60% of daily trading volume.

• Daily Volatility of 1.15% • Easy, fast and efficient through TFEX integrate trading and clearing system. ( OMX Click XT and SECUR)• No capital gain tax for individual investors• Contract size of UD$ 12,500.

The Thai Market Movement: The Thai Market Movement: Jan 03 – Jul 05Jan 03 – Jul 05

300

400

500

600

700

800

900

Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05

SET Index

200

250

300

350

400

450

500

550

600

SET50 Index

SET Index

SET50 Index

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Aug-05Mar-05Nov-04Jun-04Feb-04Oct-03May-03Jan-03

Daily Trading Volume

0.00

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

SET Market Cap

Daily Trading Value

SET Market Cap

(Mil. Baht) (Mil. Baht)

Size and Volume of the Thai MarketSize and Volume of the Thai Market

SET50 Index Futures (Draft)SET50 Index Futures (Draft)

Underlying index SET50 Index

Multiplier 1,000 Baht. ( Contract’s size is approximately USD 12,500)

Minimum Price Fluctuations

0.10 index points

Price Limit + 30% of the previous day settlement price

Trading Hours Before and after stock market 15 minute

Contract Month Listed

March, June, September, December up to 4 quarters

Speculative Position limit

10,000 net long or short in any contract month or all contract months combined. Bona fide hedger may request for exemption.

Settlement Method

Cash Settled

Final Trading Day The business day immediately preceding the last business day of the contract month

Final Settlement Price

The Settlement Price shall be • the numerical value of the SET50 Index, rounded down to the nearest two decimal points • the average of value of the SET50 index taken at one minute interval during 4:00p.m. - 4.30p.m. plus the closing SET50 index value, after deleting three highest and lowest value.

Opportunities at TFEX

• Thailand is one of the fastest growing Thailand is one of the fastest growing economy in Asia with population over 60 economy in Asia with population over 60 Million.Million.

• Great potential growth of capital market Great potential growth of capital market with highly liquid stock market. with highly liquid stock market.

• Open economy with large numbers of Open economy with large numbers of international brokers .international brokers .

• No restriction on foreign investors & No No restriction on foreign investors & No transaction tax. transaction tax.

• Launching date (soft launch) in Nov 05.Launching date (soft launch) in Nov 05.

Thailand Futures Thailand Futures ExchangeExchange

www.tfex.co.thwww.tfex.co.th

For More Information For More Information Please contact our at 662-Please contact our at 662-229-2757229-2757