Bangkok--14 May--SET
Thailand Securities Depository Co., Ltd. (TSD) announced at the 5th Asia/Oceania Central Counterparties (CCP) Meeting that it is examining the commercial feasibility of servicing the bonds over-the-counter (OTC) market. TSD also expressed interest in an interconnected post-trade system involving its regional counterparts in Asia/Oceania. Also, information on business contingency plan will be shared in the region, helping to strengthen their ties.
TSD hosted the CCP meeting during May 8 — 10, 2007 bringing together representatives from nine organizations in eight countries, namely the stock exchanges of Hong Kong, Japan, Korea, Malaysia and Taiwan, plus clearinghouses from China, India, Indonesia and Japan, TSD Chief Executive Officer Ms. Sopawadee Lertmanaschai said.
“TSD presented the OTC initiative for bonds at the meeting, as current trading is substantial and involves institutions which clear and settle independently with no central counterparty to insure against risk.
“TSD plans to provide services relating to trading risk insurance for The Stock Exchange of Thailand, Market for Alternative Investment, Bond Electronic Exchange and Thailand Futures Exchange. Obviously, the depository would be capable of providing similar services to an OTC market,” Ms. Sopawadee stated.
However a number of matters require closer scrutiny, e.g. cross-margin, collateral management, current legal issues, and auto-securities borrowing and lending, and TSD would like to consult with the Bank of Thailand and the Securities and Exchange Commission.
The meeting noted that because of potential hostile financial tactics, a number of exchanges and clearinghouses pay close attention to risk management issues and business contingency planning. Delegates expressed interest in understanding each other’s clearing and settlement system with a view to integration, similar to what has occurred in Europe. This would enhance trading liquidity in the Asia/Oceania region.
The Asia/Oceania CCP Meeting has been held annually for the past five years, with Thailand being this year’s host. Members rotate the role of meeting host and the next get-together will be held in India.
TSD is a subsidiary of The Stock Exchange of Thailand providing post-trade services including securities depository, securities clearing and settlement, securities and fund registration and back-office service.
There are 638 members in the securities depository service, 73 in the clearinghouse, 567 in securities registration, 10 in fund registration, and 42 in back-office service (10 - equity; 8 - debt; and 24 - derivatives). For more information, please visit www.tsd.co.th or call TSD Call Center on 0-2229-2888, or email [email protected]
For more information, please contact TSD Business Development Dept.:
Ms. Malyn Pienchob / Ms. Chantanee Pongkrasin Tel: 0-2229-2892-6