Asco to brainstorm on Asean link-up

The association will also speed up discussions between the Stock Exchange of Thailand (SET), the Securities and Exchange Commission (SEC) and the Bank of Thailand to facilitate financial transactions.

Pattera Dilokrungthirapop, Asco’s chairperson, said the association had joined hands with its members to prevent any damage caused by competition over brokerage commissions, as in the past. 

The key issue is to cope with trading via Asean linkage, she added. 

“The association is quite aware that we have to compete with foreign competitors, which have greater flexibility and foreign stock-exchange knowledge,” Pattera said.

At the meeting next month, the association will talk to its members about several issues, particularly back-office preparations for the linkage like clearings, settlements and foreign exchange. 

Cross-border trading requires having foreign currencies in hand in order to mitigate risks, Pattera said. The meeting will also discuss business operations in the region, so everybody is aware of obstacles, problems and issues needed for flexibility. 

If obstacles cannot be overcome, Thai brokerage firms may not be able to compete with foreign rivals, Pattera said. “Our members have to help each other and jointly brainstorm ideas to solve and lessen business obstacles and jointly lay out strategies for a road map. We have to compete with foreign brokerage firms. If our members do not help each other, we may lose business opportunities,” she said. 

Pattera noted that the SET and the SEC would join forces to help solve problems. The securities watchdog will also cooperate with the central bank in terms of foreign currency. 

 “Now, the SEC plans to have discussions with the central bank, and the association and brokerage firms will join up to request that their foreign currency position is sufficient for transactions. If we do not have such a position, we will not have business flexibility and will lose to competitors,” Pattera said.