The BEX announced that it would launch its ‘Firsts’ electronic trading platform in early 2006. The ‘Firsts’ was developed in 2005 to help facilitate trading amongst dealers, limited broker dealing and underwriting (limited BDU) business operators, as well as institutional investors.
‘Firsts’ will provide trading facilities for bid and ask quotations, a negotiation channel, various analytical tools, e.g., calculator and bond indexes, and be the exchange of central trading information, and additionally, the ‘Firsts’ will be linked to the clearing and settlement systems of the Thailand Securities Depository Co. Ltd. (TSD), to make trading amongst institutional investors and dealers more convenient and cost-efficient.
Once the ‘Firsts’ becomes operational, bond trading turnover should be boosted. In 2006, the BEX aims for a 30% market share of the total bond trading market.
In addition, pursuant to being the country’s bond trading center, the BEX also targets to have 50% of the total corporate bonds and 100% of the government bonds listed on the market.
Currently there are a total of 78 corporate bond issues listed on the BEX. Their total outstanding value stands at THB733.45 billion (approx. USD17.89 billion), up THB550.23 billion or about 828% over 2004 growth.
This increase in total outstanding value was from 42 newly listed issues. These new issues include 23 corporate bond issues with a total outstanding value of THB83.45 billion, and an additional 19 government sector bonds worth THB466.78 billion. Of the newly listed government sector bonds, 10 issues are bonds worth THB343.19 billion, 4 issues are saving bonds worth THB90.19 billion, 2 are issues of state enterprise bonds worth THB7 billion, and 3 are issues of government agency bonds worth THB26.4 billion. Currently there are 13 securities companies acting as bond dealers.
In 2006, the BEX will hold a bond trading simulation so as to familiarize investors, students and other members of the general public with bond trading. Once they learn more, people will not think that investing in bonds is so difficult. This activity has been planned for Q2/2006.
Another important goal for the BEX in 2006 is the development of its trading platform to accommodate Internet trading.
The BEX will develop its information system database to improve the efficiency of the dissemination and application of trading data, statistics, and analytical information. It will also develop its system in conjunction with the TSD to help better serve the clearing and settlement operation in the private repurchase market.
In boosting bond transactions, the BEX will cooperate with relevant parties in the government and private sectors i.e. bond issuers, financial advisors, underwriters and regulators, to help instill in the general public a better understanding of the bond market as well as the benefits and alternatives of each bond issuance.
The BEX has been conducting investor educational activities through its publications, radio and TV programs including those on the Money Channel, its booths and exhibitions at various events and on the BEX website at www.bex.or.th.
Aside from developing the Thai bond market, the BEX is also aware of its social responsibilities, and has made donations to several social foundations.
