Speedier stock settlement 'by middle of 2007'
The long-planned speed-up of the stock settlement process is likely to take place in the first half of next year.
"The change in stock settlement time from three trading days [T+3] after orders are matched to two days [T+2] will help sellers receive their money faster. Also, this will help increase liquidity in trading volume," Sopawadee Lertmanuschai, president of the Thailand Securities Depository (TSD), said yesterday.The shorter settlement period was due to start in June of last year but the lack of readiness of brokers' trading systems and investor understanding has delayed implementation. Under the new rule, investors will have to pay for their stock purchases two trading days after orders are executed instead of the current three days. Sopawadee said that in a survey, brokerages had confirmed their systems were ready for the shift to T+2 and that their customers were aware of the change. The Stock Exchange of Thailand will first have to verify whether they are really ready, she said. Also in the first half of next year, the TSD will set the timeframe for all Internet traders - and not just new Internet traders like now - to adopt the automatic transfer system (ATS) as a payment channel. The ATS handles payments once orders are matched. Piyarat Setthasiriphaiboon The Nation
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