Thai Bourse enhances securities depository services

Thai Bourse enhances securities depository services



The Stock Exchange of Thailand (SET) announces that it has scheduled to launch Thai Depository Portal on May 1 for securities depository services of bonds and funds listed on SET. The system, as a communication channel for registrars through Thailand Securities Depository Co., Ltd. (TSD), helps increase security of information transmission, while reducing risks, and procedures.

“SET is strongly committing to matching the right financial opportunities for partners and market participants by continuously increasing efficiency of post-trade services. We have recently signed an agreement with 16 financial institutions for Thai Depository Portal service. With higher security and procedure reduction, we believe that this is another post-trade service to help boost efficiency for members, shareholders, and participants,” said SET Executive Vice President, Post-trade Services and Development, Bordin Unakul.

The 16 financial institutions include seven banks; which are Bangkok Bank, Bank of Ayudhya, CIMB Thai Bank, Kasikornbank, Siam Commercial Bank, Thanachart Bank, and TMB Bank. There are also nine asset management firms: CIMB-Principal Asset Management Co., Ltd., Kiatnakin Fund Management Co., Ltd., Krungsri Asset Management Co., Ltd., Krung Thai Asset Management pcl, ING Funds (Thailand) Co., Ltd, MFC Asset Management pcl, One Asset Management Limited, TMB Asset Management Co., Ltd., and UOB Asset Management (Thai) Co., Ltd..

Thai Depository Portal electronically transmits details of securities and notifications of register book closing for interest and dividend payment between registrars and TSD. It was developed for servicing bonds and funds kept in scripless form and replaces manual transmission. Therefore, it will help reduce risks and procedures of document management. The service is based on straight-through processing, with high-standard security in information transmission. It requires user logins and passwords to access information to ensure security for shareholder data bases for bond issuers and investors.

SET will provide training for using the system later this month and expects to commence operating the system from May 1.

TSD, under SET group, provides securities depository services for 16 financial institutions which are registrars in scripless system totaling 570 securities worth a combined THB 544.58 million at the end of March. The valuation of the securities at the depository grew 13 percent on average from 2010 to 2011.