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Thailand Securities Depository Co., Ltd. (TSD) will bring its services into line with those of the Group of 30 (G30), an international body noted for its promotion of high standards in clearing and settlement. This, in turn, will move the Thai capital market’s performance closer to the International Organization of Securities Commission (IOSCO)’s benchmarks. In 2008, TSD will facilitate cross-border transactions by Q4/2008 through increased linkages with other central securities depositories in the region. At the same time, the company will have centralized clearing house operations for equity, debt and derivatives instruments, cutting processing time from three to two business days and reducing default risk and costs to customers.
The depository’s plans for 2008 have received board approval, TSD CEO Ms. Sopawadee Lertmanaschai said.
Presently, clearing for equity and debt instruments are handled by a TSD unit, while clearing for derivatives is handled by Thailand Clearing House Co., Ltd. (TCH), a TSD subsidiary. Next year all clearing operations will be centralized at TCH.
In regard to other investor services, dematerialization for securities holders will cut issuer’s costs and enhance efficiency. The Annual General Meeting will manage registration, voting, vote-counting, display and proxy-voting electronically.
TSD will increase e-Dividend users by 110,000, lifting the total number of users to 770,000 or 70% of all shareholders. Furthermore, the company has a target of 85% scripless securities depository users next year, and will provide registration services to an additional 12 non-listed firms.
“TSD will achieve service excellence through rapid, integrated and proactive customer service. We will be ready for cross-border transactions and international linkages, thus contributing to the Thai market’s overall competitiveness,” Ms. Sopawadee concluded.
