Gold futures holders can exchange their matured contracts into physical gold at seven gold shop operators starting in August.
Executives of TFEX and the seven gold shop operators announce their cooperation to offer an exchange service for physical gold on July 29, 2014.
The Thailand Futures Exchange (TFEX) said it had joined hands with the seven operators to offer the physical gold exchange service.
They are Globlex Holding Management, Classic Gold Futures, GT Gold Bullion Co Ltd, YLG Gold, Ausiris, MTS Gold and Hua Seng Heng Commoditrust, said TFEX managing director Kesara Manchusree in a statement on Tuesday.
"The service will be a choice for investors, gold shop operators, or investors wanting to use physical gold in the future. They are able to trade gold futures in TFEX to fix the trading price in advance without full payment or for immediate delivery on the transaction date. This will help boost flexibility for investors to exchange gold and manage risk the way they want," Ms Kesara added.
The service will be for the 50-baht and 10-baht gold futures contracts, starting from the contract maturing in August (GFQ14 and GF10Q14).
Gold futures holders can apply for the service by informing the seven gold shops prior to the contract maturity and can exchange to physical gold within two working days after maturity.
The gold trading price will use reference from final settlement price of the gold futures contract matured in that month.
In the first six months of this year, gold futures had a total trading volume of 745,094 contracts, equivalent to gold weight of 12.4 million baht, or about 189,575 kilogrammes.