Thai Bourse Strives to Become Regional Post-trade Services Hub

The Stock Exchange of Thailand (SET) is boosting efficiency of its post-trade services by developing systems and reducing procedures to facilitate members, boost competitiveness and increase capability as part of its goal to become the center of post-trade services in Southeast Asia.

Services to be introduced are Corporate Action news (sent as SWIFT messages) and Third Party Clearing (TPC) services, both which will boost liquidity and increase business opportunity to members of the Thailand Securities Depository Co., Ltd. (TSD) and Thailand Clearing House Co., Ltd. (TCH). These services will be launched in this coming third quarter, said SET Executive Vice President, Post-Trade Services & Development, Bordin Unakul.

“The Thai bourse will be the first exchange in ASEAN to use SWIFT messages for distributing information of listed firms. Receivers can also transfer information into their data base automatically by a system called Straight -Through Processing (STP). For Third Party Clearing service, it will boost liquidity and increase transaction volume,” Bordin said.

Corporate Action News using SWIFT messages is the international standard of communication popular among financial institutions, enabling depository participants, especially custodian banks, to directly receive information and data from listed companies, e.g., on dividend payment, recapitalization, or book closing for shareholders ‘ meetings. Such transmissions are timely, speedy and accurate. The service will start in September.

For Third Party Clearing will allow brokerages which are clearing house members to clear and settle securities on behalf of non-member brokers. This will boost business opportunity for both TCH members and non-members. The service will commence with brokerage group members in July.

TSD and TCH are SET subsidiaries. TSD provides securities deposit, withdrawal, transfer, pledge and revocation using a scripless system. It also provides securities registration services and data management to maintain correct and complete information. TCH is the center of clearing and settling of securities traded on the SET, OTC markets, and the derivatives market.

TSD has 118 participants, composed of 37 brokerages, 58 commercial banks and 23 other types of institution. TCH has 89 members, composed of 37 brokerages, 46 commercial banks and six other institutions.

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