Mrs. Nongram Wongwanich, TSD President, disclosed that today (10 November 2003) that TSD has invited executives in charge of IT and back-office services of SET member companies, clearinghouses and mutual funds, as well as other related parties, to attend the "Post Trade Integration Industry Kick-Off". This special meeting is intended to elaborate on usage of modern technology to upgrade TSD's back office services, its plans for future services, and other forward-looking topics.
"This project is a centralized system linked to member companies, and will enable the TSD to implement new services more efficiently. Some of these services will include the securities subscription system and the securities borrowing/lending system. Moreover, it will also enable the TSD to develop into both a Central Clearing House and a Central Counter Party for more efficient securities trading and managing default risk. The company will also be able to deal with new instruments such as debt instruments, derivatives, and instruments traded on the agricultural futures market."
"Furthermore, this development is a step towards the T+2 clearing and settlement period and Straight-Through-Processing (STP) connecting all the back-office work systems. STP will be more efficient for coping with future instruments, such as Asian bonds. TSD expects to start providing services under this new system from Q3/2004 onwards," Mrs. Nongram said.
Mr. Chaiyoot Chamnanlertkit, SET Senior Vice President- Information Technology Division, noted that the work system emphasizes accurate, speedy services, and up-to-date information through the introduction and integration of modern and standardized technology appropriate for future improvements. In addition to this, the TSD is discussing with the Bank of Thailand to collaborate in system developments directly linking the TSD's and the BoT's systems. This project will employ internationally accepted and secured technological standards, and is expected to help enhance liquidity as well as reduce risk in the clearing and settlement process. Later, it will be developed into a real-time settlement system called Real Time Gross Settlement (RTGS)" Mr. Chaiyoot said.
The post-trade integration project was approved by the SET Board in June 2003, and has been jointly developed by the Financial Infrastructure Solutions (Thailand) Co., Ltd. and the SET's IT team to deal with new businesses.
