A leading brokerage firm believes the face of Thailand's securities industry is poised for dramatic change and that within a few years there will be fewer than 20 players in the industry.

Asia Plus Securities (ASP) managing director Udomsak Chakreyavanich said the changes would come with the liberalisation of both the securities industry and commission fees charged by brokers, in 2011 and 2012, respectively.

"With the liberalisation schedule approaching, within three years from next year, we'll definitely see mergers and acquisitions starting to take place," he said. "At the end of the day, there'll be fewer than 20 players in the market."

There are currently 39 brokerage firms in existence, but two houses have temporarily ceased operations.

Following a meeting with Finance Minister MR Pridiyathorn Devakula earlier this month, the Securities and Exchange Commission (SEC) announced that over the next five years, it would liberalise the securities industry.

The number of brokerage licences is currently limited, and although a newcomer may qualify, it cannot be granted a licence. Under the coming liberalised regulations, new players whose qualifications met SEC requirements would be able to operate a brokerage.

"This will force existing brokerage firms to prepare for a more competitive environment in the future," Udomsak added.

As well, the Stock Exchange of Thailand last week finalised adjustments to the commission fees charged by brokerage firms, capping increases in two stages before allowing fees to be liberalised in 2012.

From next year, the minimum fee for each general trading transaction will be 0.25 per cent of the total value, while the fee for trading over the Internet will be 0.15 per cent, or 60 per cent below the charge for general trading.

The second stage will come in 2010, with a sliding scale of fees.

Udomsak said that next year, ASP expected to be a financial adviser for eight merger, acquisition and initial public offering deals. The firm believes it will make more than Bt100 million from these transactions.

As well, ASP believes it will have more financial advisory deals next year from companies planning to rehabilitate debts. However, brokerage fees will remain the company's main source of revenues, accounting for about 70-80 per cent of total revenues.

ASP, which was established in 1974, changed its name to ABN AMRO Asia Securities after ABN AMRO Asia (Holdings) became its major shareholder in 1997. In 2003, it acquired the entire issued share capital of Asset Plus Securities and in 2004 changed its name to Asia Plus Securities. ASP became the second-largest player in the industry in terms of market share, chasing only Kim Eng Securities (Thailand) for the industry's leadership.