Thailand’s SEC Proposed to Raise Fees on Futures Trading

The SEC wants to replace the annual fixed fee charged to the TFEX with a per-contract fee, which could more than triple the cost to the futures bourse.

Thailand’s SEC (Securities and Exchange Commission) plans to replace the annual fee it charges the TFEX (Thailand Futures Exchange) with a contract-based plan, citing increased futures trading activity and steady growth on the bourse.

TFEX has been paying a fixed annual charge of THB 2 million (USD 63,000) since 2011. Under the plan, TFEX will instead have to pay THB 0.05 per contract, subject to a minimum annual collection of THB 2 million.

The SEC reportedly wants to increase the annual charge because trading volume on the TFEX has grown steadily, averaging about 550,000 contracts per day on a year-to-date basis. Based on this average volume, TFEX would have to pay in excess of THB 7 million on a full year basis under the new fee structure.

SEC secretary-general Ruenvadee Suwanmongkol said at a news conference on Thursday (10 September) that the new fee structure for TFEX is appropriate, given that the higher volume has increased the costs of operations and regulatory management by the SEC.

The SEC says it is “still assessing the new fee structure” and will evaluate opinions received from business operators, the SET (Stock Exchange of Thailand) and other stakeholders in the capital market.

Securities firms have asked the SEC to reduce the proposed fees, saying the new rate is too high and that the TFEX may pass on the cost to brokers, who would then pass it on to investors.

The SEC will maintain the fees collected from brokers for securities and derivatives at the existing THB 0.001 per trade, capped at THB 10 million per year.

Securities companies also pay the SET a trading fee of 0.005 per trade and a clearing fee of THB 0.001 baht per trade, in addition to a fee for holding securities in clients’ trading accounts, charged at THB 1.50 per month per every THB 1 million.

 



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