The Derivatives Market Act drafted by the Securities and Exchange Commission (SEC) of Thailand was passed in May 2003 and took effect in January 2004. Legal provisions regarding the supervision, regulation, and conduct of derivatives markets, and guidelines on the formation and operation of an exchange and clearinghouse are specified in the Act.

In February 2005, the Thailand Futures Exchange (TFEX) was granted approval from SEC to operate a futures exchange. TFEX launched the SET50 and SET100 Index Futures as investment benchmarks, followed by interest-based products and stock options.