The Stock Exchange of Thailand (SET) has updated its third-party clearing service and global custodian services to improve post-trade facilities for market participants.
The enhancements are part of the bourse’s ongoing Operations Master Plan announced in July.
The revamp to the third-party clearing service now allows non-clearing members to outsource clearing and settlement to more than one clearing member through give-up/take-up arrangements.
The aim of the expansion is to reduce the risk of clearing and settlement by distributing transactions to more than one party, according to SET. In addition, investors can centralise clearing and settlement of all their transactions through a single broker, allowing them to realise cost savings.
In June, SET-owned depository services provider Thailand Securities Depository mandated global custodians to cover major financial markets in 27 countries, as the first step towards building a clearing and settlement network to service depository members holding foreign securities. SET plans to add dual listings and depository services for members from 2013.
“Building post-trade infrastructure facilities enables us to expand and centralise services effectively, boosting SET’s competitiveness and paving the way to become the centre of post-trade services in southeast Asia,” said Bordin Unakul, SET executive vice president.
Last month, SET agreed a plan with Korea Exchange to help develop the country’s clearing and settlement system and updated its trading rules to comply with international standards. In June, the exchange also reported that it is on track for the planned Q3 overhaul of its equities trading, market data and surveillance systems in partnership with Swedish technology firm Cinnober.