Thailand to open rice futures exchange in October
September 01, 2003
by Emily Buckley
BANGKOK, THAILAND — The Agricultural Futures Exchange of Thailand (AFET) is scheduled to open for trading in two key commodities on October 1, according to a report by The Nation, a Thailand news group. Thailand is the world’s largest rice exporter, and the AFET would be the first to trade in rice futures.
Five years after the government approved its creation, the AFET will begin trading contracts in 5% broken white rice and natural ribbed smoked rubber sheet No 3, reaching a combined value of Bt152 bln (U.S.$3.8 bln). AFET officials said they planned to add a new agricultural product to the exchange every six months.
Instead of a pit system, The Nation said AFET will follow suit with the Stock Exchange of Thailand in using an electronic trading and clearing system where traders will be able to access the futures market’s trading system via the Internet.