The Stock Exchange of Thailand (SET) has contracted exchange technology provider Cinnober to replace its trading, market data and surveillance systems for its equities and derivatives markets.
The new systems will start to go live in 2012 for equities and 2013 for derivatives.
“This is an investment in world-class technology that will not only boost the Thai capital market’s efficiency and vitality, but also help bring in more business opportunities for SET and its market participants while helping cut overall operational costs,” said Charamporn Jotikasthira, president of the SET. “Our own internal IT strength combined with Cinnober’s cutting-edge technology and expertise will bring SET’s competitiveness to a whole new level.”
The Stock Exchange of Thailand has been conducting systems evaluations over the last eight months. With Cinnober’s technology, SET expects to offer superior transaction speed to support high-frequency and algorithmic trading as well as accommodating links to other marketplaces to attract further liquidity.
On completion of the installation, equities and derivatives trading will be performed on a single platform based on Cinnober’s TRADExpress Trading System, a multi-asset execution system that claims to deliver improved functionality, speed and throughput capacity over the existing platform. Cinnober will also provide SET’s new market data dissemination system, based on TRADExpress Information Manager, as well as the market surveillance system Scila Surveillance.
On 22 June the SET announced a programme under which members of its subsidiary, the Thailand Clearing House, would be able to provide clearing services for non-members, starting in July, which is expected to boost liquidity and increase transaction volumes on the exchange.
The exchange, which is planning an initial public offering, has launched a number of initiatives aimed at boosting market liquidity in the last six months, including the listing of its first Chinese exchange-traded fund, expanding the securities available for short-selling and launching non-voting depository receipts for foreign investors as part of a drive to increase foreign participation on its market.