Thailand SET to join ASEAN trading link

The Stock Exchange of Thailand will connect to the ASEAN Trading Link on 15 October, it has been revealed.

The Stock Exchange of Thailand (SET) will connect to the ASEAN Trading Link on 15 October, it has been revealed.

Following system tests with Thai brokers, SET will become the third market in the regional trading network that was launched 18 September with Bursa Malaysia and the Singapore Exchange.

Delayed by regulatory issues, the link was originally scheduled to open in June, with SET scheduled to join in August 2012.

Jointly, the three initial markets will offer nearly 3,000 listed companies with a market capitalisation of US$1.4 trillion, accounting for some 70% of the total market capitalisation of ASEAN. The expectations are that other ASEAN exchanges in the Philippines, Vietnam and Indonesia will join later, although no other markets have been announced and unconfirmed press rumours have circulated that Indonesia may not join.

“As SET’s new trading engine, SET CONNECT, has operated smoothly with full efficiency since early September, SET is now ready to top up financial opportunities for the Thai capital market,” said SET president Charamporn Jotikasthira. “Joining in the ASEAN Trading Link would boost transactions of ASEAN securities trading conveniently and efficiently. In addition, it will increase options and varieties of financial products for Thai investors, boost business opportunities for brokers and listed companies.”

Nine Thai brokers are ready to offer trading via the ASEAN Trading Link on 15 October.

“Others are developing their internal systems and plan to join the ASEAN Trading Link at the later stage. So, we strongly believe adding in the ASEAN Trading Link will attract more ASEAN investors to the Thai stock market,” said Charamporn.

The nine Thai brokers live at launch are Krungsri Securities, Maybank KimEng Securities (Thailand), KT Zmico Securities, Finansia Syrus Securities, KGI Securities, Thanachart Securities, Country Group Securities, SCB Securities Co and UOB Kayhian Securities (Thailand).

In July, 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 reported it was on track for the planned Q3 overhaul of its equities trading, market data and surveillance systems in partnership with Swedish technology firm Cinnober.