Thailand Regulator Issues Draft Regulations on Overseas Investment through Derivatives Broker

The Bank of Thailand (BOT) has approved the proposal to allow retail investors to invest in derivatives traded on foreign derivatives exchange without limiting investment objective only to risk management. The proposed draft regulations aim to provide investors with more variety of investment alternatives and promote new income channels for securities companies as well as increase experiences in overseas investment.

Under the proposed regulations, derivatives brokers must have infrastructure in place to render service to retail investors to trade derivatives on foreign derivatives exchange. While the investment objective in relation to derivatives trading will no longer be limited, derivative brokers, in providing the service, will be required to comply with rules and practices prescribed by the Association of Securities Companies with the SEC approval.