The Securities and Exchange Commission, Thailand backs expansion of permissible derivative underlyings to include digital assets and physically delivered carbon credit futures

The Securities and Exchange Commission, Thailand has supported expanding the permissible goods and variables under the Derivatives Act B.E. 2546 (2003) and is preparing related regulatory frameworks, following Cabinet approval of the Ministry of Finance’s proposal. The package is intended to broaden the Thai derivatives market while keeping related services within an appropriate supervisory framework. The expanded scope is intended to accommodate new forms of underlyings such as digital assets, allowing them to serve as underlying products. It also involves classifying carbon credits as goods rather than variables, which would enable physically delivered futures contracts alongside cash-settled contracts through the derivatives exchange regulated under the Derivatives Act, aligned with principles in the draft Climate Change Act. Next steps include developing regulatory requirements for related business activities, including amendments to derivatives business licences so digital asset business operators can offer derivatives referencing digital assets, and reviewing the licensing and supervisory requirements for the derivatives exchange and derivatives clearing house for suitability with new underlying products. The SEC will also coordinate with Thailand Futures Exchange Public Company Limited to set contract specifications, particularly for derivatives products referencing digital assets.