TSD Joins Its Korean Counterpart In Developing Securities Borrowing-Lending And Private REPO Systems for Corporate Bonds

Mrs. Nongram Wongwanich, the President of Thailand Securities Depository Co. Ltd. (TSD), announced that on June 27 the TSD, in conjunction with The Stock Exchange of Thailand, signed an agreement of cooperation with the Korea Securities Depository (KSD) to develop systems for Securities Borrowing and Lending (SBL) as well as the Tri-Party Repurchase Agreement (tri-party REPO) for corporate bonds in Thailand.

The Korea Securities Depository has become experienced and specialized in conducting SBL since 1996, and Tri-party REPO since 2000. At present, SBL and Tri-party REPO are receiving quite a lot of attention and have high possess liquidity.

“The TSD will receive guidance in these two areas from the KSD which will act as a consultant. This collaboration has materialized so that Thailand’s SBL and Tri-party REPO operations will be carried out in the most appropriate and efficient business manner while remaining in accordance with the stated missions that the TSD has been assigned to undertake by the Bank of Thailand as the leader of a committee concerned with bond lending and managing collateral.

It is anticipated that both SBL and Tri-party REPO in Thailand will be inaugurated sometime in the first quarter of 2006”, said Mrs. Nongram.

Mr. Eui Dong Chung, Chairman & CEO of the KSD and co-signer on this MoU, said that the KSD intends to provide consultancy services for knowledge transfers and personnel development, which will include business model development, risk management and collateral management and technical development of the business systems to support the SBL and private REPO businesses.

He noted, “This collaboration promotes the closer relationship between the KSD and the TSD, including the wider relationship between the Korean and Thai capital markets. Also, it is certain that the KSD’s expertise in these areas will help the TSD successfully achieve its missions”.

Mrs. Patareeya Benjapolchai, Executive Vice President of SET, said that “the SET, as the technology provider for the TSD, will be in charge of the development of the operating system as well as any support technology for SBL and Private REPO.

Currently, the TSD and the KSD have created close ties as both are members of the Asia-Pacific Central Securities Depository Group (ACG), which is a centralized, information sharing organization for all securities depository centers in the Asia Pacific region and currently has 17 member depositories throughout the region.