Bangkok--4 Jun--SET
Thailand Securities Depository Co., Ltd. (TSD) has allocated THB 70 million (about USD 2.02 million) to system and facilities development for the securities borrowing and lending (SBL) business. This will enhance the quality of services for TSD’s members and the liquidity and competitiveness of the Thai market, as per The Stock Exchange of Thailand (SET)’s strategic plan, which proposes a complete SBL service for lenders and borrowers by 2009.
SBL transactions are not yet popular in Thailand nor very liquid, so TSD is funding the system and facilities development to develop the SBL market, TSD Chief Executive Officer Ms. Sopawadee Lertmanaschai said.
“As SBL transactions gain acceptance from investors as a portfolio and liquidity management tool, the liquidity in the Thai market will increase,” Ms. Sopawadee Lertmanaschai added.
Currently, TSD acts as a lender of last resort for securities settlement to reduce possible default risks. It has encouraged institutions to participate in the SBL market as securities lenders, and acted as an intermediary providing an SBL system for securities depositors, a standard contract for these transactions and educating its members and related parties about the process.
“TSD’s recent survey of its members revealed the need for an effective system for facilitating brokers/custodians-investors transactions. This should be open to all, easy-to-use, serve both local and overseas clients and be connected to other related systems. We expect to start providing an SBL services system which meets international standards by Q1/2008,” Ms. Sopawadee concluded.