News Column

Macquarie aims for the top

July 2, 2014

By Nuntawun Polkuamdee, Bangkok Post, Thailand

July 02--Macquarie Securities (Thailand), a Thai unit under Australia-based Macquarie Group, aims to overtake Bualuang Securities as the top issuer of derivatives warrants (DWs) within the next few years.

The broker, which is now the second-largest issuer after it began operation here in late 2012, plans to issue around 300 DWs this year, said Noppadon Duangtipnate, vice-president.

DWs are similar to normal warrants in that they give investors the right but not the obligation to buy a given stock at a set price and amount; the difference is DWs are issued by a third party.

Mr Noppadon said DW trading volume is expected to surge to 6-8% of total trading in the next three to five years from 2-3% at present.

The DW market in Thailand started seven years ago and trading activities have been increasing with trading accounting for 2.49% of the total trading volume as of May, up from 2.2% last year. Trading in DWs was relatively low compared with the overall market. The average turnover was around 650-700 million baht per day for the first five months.

Turnover of DWs last year tripled from a year before, but it is likely to grow slightly due to the unfavourable market condition in the first half.

At present, 13 out of the 38 local securities companies are DWs issuers.

A couple of derivatives, S5028C1406B and S5028P1406B, whose underlying asset is the SET50 index, were the most popular during the first half. DWs with telecom and energy plays as underlying assets are expected to become attractive amid volatility due to uncertainties over the fourth-generation (4G) licence auction and energy reform.

Mr Noppadon said the company provides a new DW trading programme, research, trading statistics, price comparisons and other information on its website.

He added that DW trading in the Thai market has vast room to grow as it represents a mere 2-3%, well below the 30% of total trading in a regional market like Hong Kong.


(c)2014 the Bangkok Post (Bangkok, Thailand)

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Source: Bangkok Post (Thailand)

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