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The Convergence
of Digital Exchanges
Rapid technological change has made information technology (IT) become an important part
of our daily life. SET develops its IT systems to meet international standards of IT Governance
to ensure transparency and information security. This approach improves cost efficiency,
operational capacity and builds stakeholder confidence. SET also aims to become a digital
exchange to support Thailand’s economic growth and seamlessly connect the Thai capital
market to its counterparts overseas.
Single Platform:
connecting all about investment
SET’s IT Master Plan 2010-2015 focused on developing
a stable computer system that could support the expansion
and diversification of investments on a single platform,
especially in the development of trading systems,
post-trading systems and information dissemination, to
improve efficiency and security in accordance with ISO/
IEC20000 and ISO/IEC27001. SET aims to create the
utmost benefits to key business development stakeholders
such as listed companies, member companies, investors
and system developers.
SET continuously develops its trading system, called SET
CONNECT, and its post-trading system, called SET CLEAR,
for the equity and derivatives markets. The systems can
accommodate SET’s increased volume of trading and
various products and currencies, as well as connecting
the Thai capital market with international capital markets,
faster and more conveniently than before. In addition,
SET has adopted a real-time securities trading supervision
system, called SET WATCH, to prevent unauthorized
trading transactions.
In 2015, SET successfully developed SET CLEAR,
a system for the equity market that connects Thailand
Securities Depository Co., Ltd. (TSD) and Thailand
Clearing House Co., Ltd. (TCH) directly to the member
companies (“straight-through processing”). SET CLEAR
can also clear and settle transactions between member
companies and custodians (pre-settlement matching
system) effectively, which helps re-engineering several
procedures. SET also monitors real-time delivery in order
to mitigate default risk.
Thailand Futures Exchange (TFEX), a SET subsidiary,
also launched a futures trading system with underlying
agricultural products to cope with the expansion of the
derivatives market and a variety of investment products.
Moreover, TFEX was awarded the Best Technology
Innovation by an Exchange Award in 2015 from Futures
and Options World (FOW). This prize is given to the
derivatives market that has outstanding technology,
reflecting SET’s commitment to provide efficient systems
that help add value to the business and stakeholders.