Bangkok--4 Sep--SET Thailand Securities Depository Co., Ltd. (TSD) has adjusted its clearing house rules and procedures to make them clearer and meet the standards set by the International Organization of Securities Commission (IOSCO). The areas affected are central counterparties (CCPs) and settlement finality. The Securities and Exchange Commission (SEC) has approved these changes, which will increase confidence in TSD, TSD President Ms. Sopawadee Lertmanaschai said. “The adjustments enable the depository, as the clearing house, to perform as CCPs immediately following a stock-trading transaction between seller and buyer on SET. This assures the parties involved that there is an official agency responsible for any damages that may occur due to a delay in clearing and settlement of securities, with the exception of unforeseen emergencies in the system that prevent TSD proceeding normally,” Ms. Sopawadee added. The change to settlement finality is that now the clearing and settlement process is regarded as complete only after the member delivers the securities and settles payment with the clearing house. When these steps are completed, the rule of finality is in effect and irrevocable, thus protecting the assets involved and preventing damage to investors. “Risk management is at the heart of a clearing house, because all transactions carried out under its auspices, especially when TSD is a party bound by contract, carry risks. The regulations make risk management more efficient, protect investors’ interests and create confidence that all transactions on the Thai capital market are defended by a risk protection system which meets international standards,” Ms. Sopawadee stated. Currently, the clearing house service is a part of TSD and covers the settlement and delivery of securities traded on SET, Market for Alternative Investment and Bond Electronic Exchange, as well as the settlement and delivery of government bonds traded outside the market. To maintain market stability, TSD acts as a third party in receiving and settling payments or securities for/from members representing buyers or sellers. For more information, please contact the Business Relations Unit, the TSD Marketing Dept.: Malyn Pienchob Tel: 0-2229-2892 / Chantanee Pongkrasin Tel: 0-2229-2896