The Stock Exchange of Thailand (SET) is to add a new channel for providing updates on the indicative net asset value (iNAV) of exchange-traded funds (ETFs). This data will be sent through SET's price reporting system, and will be available for member companies, analysts and traders from 28 March 2011.
The SET is expanding its ETF market by adding more funds and enhancing the net asset value of all ETFs, said Pakorn Peetathawatchai, chief marketing officer, SET.
All asset management companies which issue ETFs on SET currently calculate iNAV values every 15 – 30 seconds during trading hours.
To make it faster and more convenient for investors to update their information on ETFs, the SET will take the iNAV of ETFs, and disseminate the data through the Thai Exchange's information dissemination system to member companies and vendors.
“The iNAV gives an approximation of the NAV of each respective ETF while trading is active, giving an almost real-time NAV that tracks prices of a given basked of underlying securities, which are also being traded at any given time,” said Peetathawatchai. “iNAV helps investors more efficiently make investment decisions on a given ETF.”
SET has introduced a number of new derivatives products over the last six months intended to increase participation on the bourse, including a Chinese ETF on 22 November, Thailand's fourth ETF and the first to use foreign securities as underlying, and non-voting depository receipts on 11 November that allow an increased level of overseas institutional participation, as SET shares have foreign ownership limits.
Sixteen single-stock futures were launched on 21 March 2011, brining the total number available to 30.