SET unveils plans to boost infrastructure capabilities
The Stock Exchange of Thailand (SET) has introduced the Operations Master Plan and agreement to have Korea Exchange (KRX) help develop its clearing and settlement system, in its commitment to expand services and strengthen capabilities for investors and other market participants.
To create a more efficient clearing system, SET’s board has chosen KRX to help improve the clearing and settlement system for equities, derivatives, and bonds
traded in Thai capital markets. These changes will boost SET’s capacities to be comparable to global leading clearing houses, as put forth in its IT Master Plan.
In addition, SET’s Operations Master Plan, as advised by leading global management consulting firm; Oliver Wyman, has been introduced in order to strengthen its operations, covering trading operations, depository, registrar, and clearing and settlement services. The master plan spans five years (2012-2016), and is a continuation of the progress made in SET’s IT Master Plan.
"These two key developments are for increasing SET’s competitiveness, creating business opportunities for members, and boosting investment potential, as well as meeting demands of investors and market participants. These improvements reinforce our great efforts to continuously match the right financial opportunities for investors and all other market participants," said SET President Charamporn Jotikasthira.
The master plan consists of four key phases: Phase 1: Strengthen risk management to boost efficiency of operations. Phase 2: Expand access by increasing access of investors and new members of the exchange, derivatives market, clearing house, and central depository to new products and services. Phase 3: Optimise operations internally by boosting efficiency of trading operations and clearing and settlement. Phase 4: Grow new business by creating new products and services to diversify into businesses other than current core services.
The Operations Master Plan enables SET to reduce overall risk levels and lower costs across key functions. It will boost operational efficiencies across SET group, broker members of SET and the derivatives market, and members and participants of the central depository and clearing house. In addition, the plan increases revenue potential through the launch of new products and businesses and further enhances competitiveness of the Thai capital market and enables it towards possible collaboration with other stock exchanges globally,
resulting in increasing attractiveness of Thai markets among investors and domestic and overseas partners.
The Operations Master Plan will be presented to top SET executives, member firms, and related parties on July 26 to enhance understanding and gain cooperation, as well as to accept suggestions for achieving the plan’s goals.