Market participants expect a resurgence of activity in FX options in Thailand. Last month, the Bank of Thailand widened the scope of acceptable derivative products onshore (DW, 10/28), and this is already resulting in a trickle of interest returning for FX options. "I expect this market will return again in a big way next year," said a corporate marketing head at a European firm in Bangkok.
Late last year, the central bank tightened regulations, requiring case-by-case approval for such products as FX options. "This effectively brought the market to a halt," said the marketer, explaining the more stringent regulations prompted end users to shift toward spot or forward positions and shut the tap on option trades.