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Sustainability management
Financial Risk
Thailand Clearing House (TCH), a SET subsidiary, is a
central counterparty (CCP) between securities buyers
and sellers. Being the securities clearing and settlement
guarantor, TCH is exposed to counterparty risk when
one or more clearing members fail their obligations. As
such, the measures to control risk of member companies
are in place, such as the establishment of the Risk
Compensation Fund to handle risks from clearing and
securities delivery in order to build confidence of related
parties and minimize risks that may incur. In 2015, SET
gave priority to achieving international standards by
reviewing the implementation and development of
post-trade services to meet the standard of the Principles
for Financial Market Infrastructures (PFMI) issued by the
International Organization of Securities Commissions
(IOSCO) and European Market Infrastructure Regulation
(EMIR) issued by the European Securities and Markets
Authority (ESMA), to boost confidence in settlement and
securities delivery system among domestic and interna-
tional financial institutions.
Regulatory Compliance Risk
The BoG continues to enhance SET’s corporate governance
culture, which will create confidence among stakeholders in
the Thai capital market. SET has identified effective measures
of compliance risk management and internal controls such
as trading of SET-listed securities by SET governors and
employees and managing conflicts of interest issues. The
Risk Management Department and the Compliance Unit are
responsible for supervising and reporting to management
and the Corporate Governance and Social Responsibility
Committee, to consider and examine the corporate
governance and social responsibility of listed companies,
including SET, and report to the BoG regularly.
In 2015, SET governors and employees strictly complied
with SET CG policies and Code of Conduct. There were no
complaints involving wrongdoing or business malpractices,
as well as no cases involving SET governors or employees
for violation of SET rules or regulations, conflicts of interest
or misusing authority in securities trading.