SET expands post-trade services

 

 

 

"Building post-trade infrastructure facilities enables us to expand and centralise services effectively, boosting SET's competitiveness and paving the way to become the center of post-trade services in Southeast Asia. Therefore, SET has extended its TPC execution, allowing clearing members to carry out give up/take up clearing and settlement obligations. Also, SET has mandated global custodians for foreign securities depository services," said SET Executive Vice President Bordin Unakul.

TPC has been in the Thai market since 2011 to boost the exchange's competitive positioning and the capabilities of brokers which are members of Thailand Clearing House Co Ltd. In the first phase of TPC development, non-clearing members are allowed to outsource clearing functions to clearing members whose business is to provide TPC services. This service has received a particularly warm welcome from members handling gold-based exchange-traded fund (gold ETF) transactions.

The next TPC development, just launched in July, is the give-up/take-up arrangement, enabling non-clearing members to outsource clearing and settlement to more than one clearing member. This will help reduce the risk of clearing and settlement by distributing transactions to more than one party. In addition, investors will reduce costs, as they can centralize clearing and settlement of all of their transactions through only one broker.

For depository services, Thailand Securities Depository Co Ltd (TSD), under the SET group, in June mandated global custodians to cover major financial markets in 27 countries worldwide. This start-up effort is to build an extensive global clearing and settlement network, to service depository members holding foreign securities, and to cover new financial services of SET in the future, including dual listings and depository services in foreign currencies. This infrastructure, expected to start operating from 2013, will be another alternative channel to centralise depository service for members in a bid to lower costs and boost efficiency for members, benefiting Thai investors in the long run.