Annual Report 2017

39 3. Excellent Infrastructure & Capability In 2017, SET strengthened the foundation for continued growth by fully utilizing technology and innovation to expand the potential, increase the efficiency, and support the growth of the Thai capital market. At the same time, SET also enhanced operational standards at international level, while continuously expanding its roles in contributing to the global communities and reinforcing the prominence in being a forefront stock market. 3.1 Developing capital market infrastructure to cater to future business trends The Stock Exchange of Thailand, as a key mechanism to drive the economy and growth of the country, continues to focus on the development of world-class infrastructure and operation systems. In 2017, working together with all related parties in the capital market, SET began moving towards a T+2 clearing and settlement cycle, by reducing to two days instead of three days, to be aligned with leading global capital markets, while increasing competitiveness and potential. The T+2 cycle was fully implemented on March 2, 2018 for the first time. SET was considered one of the leading exchanges in ASEAN to move to T+2, aligning with US and European stock markets. Throughout 2017, SET in conjunction with alliances worked closely together in developing operational and testing systems, as well as in improving working methods and related rules and regulations. On September 11, 2017, SET began the SET has moved to T+2 settlement cycle from T+3 since March 2, 2018. MON 1 TUE 2 WED 3 MON 1 TUE 2 WED 3 THU 4 T+2 T+3 THU 4 flexibility in managing collaterals. Full service will be offered in the second quarter of 2018. SET has continued to expand business operations to benefit market participants more extensively by launching FundConnext, a digital system that allows investors more convenient access to mutual funds and also expands mutual fund sales channels for asset management companies and selling agents to support the growth of the Thai mutual fund industry. In addition, the Streaming for Fund Application has also been developed for investors to access mutual fund unit trust trading services via implementation of the Straight Through Processing for Non-Resident Transaction system which allows members to send orders from foreign institutional investors more quickly, as such reducing the risk of settlement defaults. Starting from November 6, 2017, SET, in line with international standards, has been providing securities management services for investors’ pending receive of securities when there is settlement default. Both systems will enhance the Thai stock market’s settlement process. In 2017, to meet the needs of related parties, new post-trading services were developed: the Gold-D Futures clearing and settlement. On September 4, 2017, Thailand Clearing House Co., Ltd. (TCH) launched a gold bullion deposit service and appointed a delivery agent and vault operator to guarantee clearing and settlement for maturing Gold-D Futures contracts. TCH has developed a non-cash collateral system in the futures market along with criteria to review risk and efficiency of risk management tools so that securities companies have