The Stock Exchange of Thailand (SET) requested an investigation into whether some gold futures brokers have taken up the role of a futures exchange by illicitly trading orders by themselves instead of sending orders to trade on the Thailand Futures Exchange (TFEX).
People familiar with the stock market said the SET submitted the information to the Securities and Exchange Commission (SEC), requesting that it help to investigate trading activities in the futures market.
The SET looked into the matter following a sharp drop in gold futures trading orders. From January to Aug 19, trading orders for gold futures fell sharply year-on-year. The 50 Baht Gold futures fell by 34% to 2,815 contracts per day from 4,267 a year earlier, while 10 Baht Gold slipped 29% to 7,528 from 10,601 a year before.
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