Thai bourse launches new clearing and depository systems

The Stock Exchange of Thailand (SET) announced this week it rolled out its new clearing and depository systems, officially starting operations back on Monday August 24, 2015. This will accommodate growing demand in capital markets as the new engine will enhance overall straight-through processing (STP) in the trading, risk management, and increase operational efficiency in order to build infrastructure and quality services for all members.

SET Executive Vice President Bordin Unakul, said that “Thai bourse will adopt the new systems on August 24 after working closely with securities firms, custodians and depository members, as well as completing several tests to ensure smooth and seamless migration and implementation. Significantly, this is to make sure that the implementation won’t be affected investors.”

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The clearing system has been integrated into one single platform so as to accommodate settlement of equity and derivatives products,. This new system enhance overall straight through processing (STP) in the market via pre-settlement matching solution between members and custodians, truly being enhanced to meet international standards. Thus this will improve efficiency of the process.

Furthermore, the depository system of Thailand Securities Depository Co., Ltd. (TSD), a SET’s subsidiary, will also adopt the STP system for more efficiency, while the Securities Borrowing and Lending (SBL) system will be enhance to facilitate transactions for the borrowing and lending.

Lastly, SET initiated a Member Buy-in process to allow members to buy the securities when its client fails to deliver obligated securities on delivery date in order to cover the failure.

To view the official release, click here (PDF).

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