Derivative Instruments Underlying Assets 1 Financial Derivatives 2

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Derivative Instruments ������� Underlying Assets 1. Financial Derivatives 2. Commodity Derivatives 3. Equity Derivatives

Derivative Instruments ������� Underlying Assets 1. Financial Derivatives 2. Commodity Derivatives 3. Equity Derivatives

Thailand Futures Exchange (TFEX) ������������ (����� ) n stock index futures

Thailand Futures Exchange (TFEX) ������������ (����� ) n stock index futures

www. tfex. co. th

www. tfex. co. th

������ A Futures Market is a centralized marketplace where commodities are bought and sold

������ A Futures Market is a centralized marketplace where commodities are bought and sold for future delivery. Used primarily to reduce risk and not to make or take delivery. (A commitment to buy or sell a futures contract can be canceled out by making a second futures market transaction that is exactly opposite the original one. ) Source: Chicago Board of Trade. 1983. Commodity Markets: Development, Economic uses, Trading in Futures. Board of Trade of the City of Chicago, U. S. A.

������� A Futures Contract is a legally binding agreement to buy or sell a

������� A Futures Contract is a legally binding agreement to buy or sell a standardized amount of a commodity of a standardized minimum quality grade, during a specific month, under terms and conditions established by State authorities. The trading can take place either in the trading pit (e. g. Chicago Board of Trade) or in an electronic trading system [e. g. Warenterminbörse Hannover (Hannover Commodity Exchange)]. Source: Chicago Board of Trade. 1983. Commodity Markets: Development, Economic uses, Trading in Futures. Board of Trade of the City of Chicago, U. S. A.

����� n������ (Cash Market or Spot Market) n������� ��� (Futures Market)

����� n������ (Cash Market or Spot Market) n������� ��� (Futures Market)

Forward contract Futures contract

Forward contract Futures contract

Figure 1. 1 Volume of futures and options in the world by U. S.

Figure 1. 1 Volume of futures and options in the world by U. S. A and Non-U. S. A. Exchange, 1992 -2003.

Table 1. 1 Volume of futures and options traded by ten large international exchanges

Table 1. 1 Volume of futures and options traded by ten large international exchanges in 2002 and 2003 Exchange name (country) 2003 2002 Change (%) Korea Stock Exchange (Korea) 2, 899 1, 932 50. 1 EUREX 1 1, 014 801 26. 7 EURONEXT 2 695 696 -0. 1 Chicago Mercantile Exchange (U. S. A. ) 640 558 14. 9 Chicago Board of Trade (U. S. A. ) 454 343 32. 4 Chicago Board Options Exchange (U. S. A. ) 283 267 5. 9 International Securities Exchange 244 152 60. 5 American Stock Exchange (U. S. A. ) 180 186 -3. 2 Bovespa 177 91 94. 5 Mexican Derivatives Exchange 173 84 105. 9

Table 1. 2 Futures and option volume of trade by category in 2002 and

Table 1. 2 Futures and option volume of trade by category in 2002 and 2003 Products 2003 2002 106 contracts % Equity indices 3, 960. 9 48. 82 2, 791. 2 44. 89 Interest rate 1, 881. 3 23. 19 1, 478. 4 23. 78 Individual Equities 1, 558. 5 19. 21 1, 354. 7 21. 79 Agricultural Commodities 261. 1 3. 22 199. 4 3. 21 Energy products 217. 6 2. 68 209. 4 3. 37 Non-precious metals 90. 4 1. 11 71. 6 1. 15 Foreign currency/ Index 77. 8 0. 96 60. 6 0. 97 Precious metals 64. 5 0. 79 51. 3 0. 82 Other 0. 7 0. 02 0. 8 0. 02 Total 8, 112. 7 100. 00 6, 217. 4 100. 00

Table 1. 3 Volume of physical and futures market trades in 1997 Volume of

Table 1. 3 Volume of physical and futures market trades in 1997 Volume of world output (106 t) Futures traded volume (106 t) Futures volume as % of world output Cocoa 2. 9 41. 3 1, 424. 1 Coffee 6. 0 47. 4 790. 0 Sugar 126. 6 365. 2 288. 5 Wheat 612. 4 1, 119. 0 182. 7 Maize 584. 9 4, 218. 0 721. 1 Soybeans 143. 4 2, 499. 0 1, 742. 7 Cotton 20. 0 67. 3 336. 5 Rubber 6. 8 29. 8 438. 2 Copper 13. 6 410. 1 3, 015. 4 Aluminum 21. 8 5. 6 25. 7 Tin 0. 2 1. 1 550. 0 Commodity

�������� Grain Ø Wheat Ø Soybean Ø Corn Ø Rough rice Ø Barley Ø

�������� Grain Ø Wheat Ø Soybean Ø Corn Ø Rough rice Ø Barley Ø Canola Ø Oats Meats Soft Frozen Bellies Ø Cocoa Lean Hoggs Ø Coffee Ø Feeder Cattle Ø Sugar Ø Live Cattle Ø Lumber Ø Ø Others Ø Cheddar Cheese/ Non-fat Dry Milk Ø Greasy Wool Ø Palm Oil Ø Pigs Live Orange Juice Ø Piglets Cotton Ø Potatoes Ø Rubber Ø Green beans Ø Shrimp

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