Thailand: Expansion of Regulated Derivatives Underlyings

In brief

Following the SEC’s public hearing in July–August 2025, the Securities and Exchange Commission (SEC) has issued the SEC Notification No. KorThor. 2/2569 re: Determining Additional Regulated Underlyings (“Notification”) under the Derivatives Act B.E. 2546 (as amended) (“Derivatives Act”), which became effective on 1 April 2026.

The Notification formally expands the scope of regulated underlyings to cover digital assets, carbon allowances, Renewable Energy Certificates (RECs), foreign exchange indices, interest rate indices, freight indices, and indices on regulated underlying goods (“Additional Regulated Underlyings”).

For existing regulated underlyings, the Notification also amends the definition of plastic and reclassifies carbon credits.

In more detail

The key issues under the Notification, which prescribes additional regulated underlying goods and variables under the Derivatives Act, are summarized below.

Regulated underlyings under the Derivatives Act before vs after the amendment

Under Section 3 of the Derivatives Act, regulated underlyings for derivatives transactions are classified into regulated underlying goods and regulated underlying variables. The comparison of the regulated underlyings under the Derivatives Act, before and after the amendment, is set out in the table below.

Updated regulated underlyings under the Notification

The Notification, which came into force on 1 April 2026, expands and amends the scope of regulated underlyings under the Derivatives Act as described below.

a. Additional Regulated Underlyings

The following are prescribed as additional regulated underlying goods or variables under 
the Derivatives Act:

• Digital assets: Digital assets are classified as regulated underlying goods. For this purpose, “digital assets” refer to cryptocurrencies and digital tokens as defined under the Emergency Decree on Digital Asset Businesses B.E. 2561 (as amended). As a result, any person engaging in derivatives transactions or derivatives-related business involving digital assets is required to obtain the appropriate derivatives business license or registration and to comply with the relevant requirements under the Derivatives Act.
• Carbon allowances and RECs: Carbon allowances and RECs are prescribed as regulated underlying goods, supporting the Thai government’s policy of achieving Net Zero emissions and to provide market participants with more effective tools for risk management.
• Foreign exchange indices, interest rate indices, freight indices and indices on regulated underlying goods under the Derivatives Act: Foreign exchange indices, interest rate indices, freight indices, and indices based on a specific regulated underlying good or on a basket of regulated underlying goods under the Derivatives Act are designated as regulated underlying variables.

b. Amendments to existing regulated underlyings

In addition to the Additional Underlyings, the Notification also introduces amendments to certain existing regulated underlyings, namely carbon credits and plastic, as summarized below:

• Carbon credit: Carbon credits are reclassified from regulated underlying “variables” to regulated underlying “goods.” Derivatives contracts referencing regulated underlying goods may be settled either in cash or by physical delivery, whereas derivatives contracts referencing regulated underlying variables may only be settled in cash. Accordingly, this reclassification allows derivatives contracts referencing carbon credits to be settled either in cash or through physical delivery which provides more flexibility to the market players.
• Plastic: The scope of “plastic,” which is an existing regulated underlying good, is expanded to cover products derived from oil refinery, products derived from natural gas, and petrochemical products. This broadened definition aligns with international market practices and enhances risk management for relevant industries.
     

Looking ahead

Through the designation of Additional Regulated Underlyings under the Derivatives Act, the SEC has moved to align Thailand’s derivatives market with international markets by expanding the range of regulated underlyings.

At the same time, the Notification also brings the derivatives transactions involving these Additional Underlyings into SEC’s supervision. Market participants providing services in connection with derivatives referencing the Additional Underlyings should therefore carefully review their business activities to ensure ongoing compliance and strategic positioning under the enhanced regulatory landscape.

For more details, please contact our team at Baker McKenzie.

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Yanisa Nilkhet, Legal Professional, has contributed to this legal update.