Gold retailers to protest TFEX´s regulation on Derivative Gold Future

BANGKOK, 9 January 2010 (NNT) – The Gold Trader Association states its opposition to the Thailand Future Exchange (TFEX) provision, on Derivative Gold Future trading agreement made, with ten Thai baht gold for each contract.

The Gold Trader Association Chairman Jitti Tangsitpakdi said that on 16 January, the Association along with the Thailand Gold Retailer Association will discuss about their disagreement on Derivative Gold Future initiated by TFEX. By 8 February 2009, TFEX is to start implementing Derivative Gold Future by making a trade agreement with 10 Thai baht gold per each contract.

The issue, in consequence, would affect 6,000 retailers with a projected decrease of customers by 85% as well as a defunct career of goldsmiths. Mr Jitti elaborated that the TFEX’s provision might be another risk for minor investors throughout the ease of gold speculation and that could be followed by social problems.

The Association would protest such issue in diverse forms of expression. If no feedback came from TFEX, Mr Jitti said there would have a negotiation with TFEX for one year postponement of the regulation. This condition must be reconsidered and studied for its pros and cons, also to provide the retailers opportunity to adjust themselves, Mr Jitti stressed.