InfoQuest, (Sept. 03, 2019) -- Thailand's Security and Exchange Commission (SEC) has launched a new program which aims to streamline the workflow and slash costs for relevant institutions by introducing Distributed Ledger Technology (DLT) into Thai capital market as a Digital Infrastructure. This program is in line with the government's policies to boost national economy and enhance national competitiveness, and has met with active response from both public and private sectors.
In addition to DLT, SEC is also planning to introduce other digital technologies to upgrade the digital infrastructure for Thailand's capital market. DLT is a technology that automatically distributes information to network members when a transaction or transaction change occurs in the system, which will greatly reduce the time spent in each process. As there are many document management processes and procedures for various activities in the capital market, such as issuance and sale of securities, registration of customer information, and registration, purchase, settlement and delivery of securities, many allied agencies are involved to provide system development support for each process, including the Stock Exchange of Thailand (SET), the Association of Thai Securities Companies (ASCO), the Association of Investment Management Companies (AIMC), the Thai Bond Market Association (ThaiBMA), etc. In addition, Accenture (Thailand) and Baker Mckenzie are consultants to the program.
Ms. Ruenvadee suwanmongkol, secretary general of SEC, said, "SEC has formulated guidelines for using DLT as a Digital Infrastructure for all capital market activities. This technology will improve the efficiency of all capital market processes, reduce the access or use costs of the market players, make transactions more transparent and enable easier access to capital market services. SEC originally intended to use DLT to improve the efficiency of margin loan business for investment accounts in securities companies".
Mr. Pakorn Peetathawatchai, director and manager of SET, said, "SET is working to promote Digital Transformation, as it seeks to become a Digital Exchange that can provide efficient services for members, fund raisers and investors."
Mr. Pichet Sithi-Amnuai, chairman of ASCO, said, "It's necessary for securities trading activities to introduce more technologies to cut down costs and improve the competitiveness of Thailand's capital market, thus attracting domestic and foreign investors".
Mr. Vasin Vanichvoranun, chairman AIMC, said, "AIMC is committed to finding opportunities and channels for developing all industries in accordance with the ever-changing environment. DLT is such a new technology that can help solve problems arising in operation, improve transaction efficiency and make mutual fund management efficient and more reliable."
Mr. Tada Phutthitada, managing director of ThaiBMA, said, "DLT will improve the efficiency of issuance system, delivery and settlement system and other systems. In addition, it will also allow bond investors to check their relevant investment information."
Mr. Nontawat Poomchusri, managing director of Accenture (Thailand), said, "The whole world is interested in improving the cooperation efficiency with business partners and creating new income opportunities through DLT. Thailand's lead in introducing this technology will help enhance the competitiveness of its capital market."
Mr. Tinwat Phukaman, head of Banking & Finance and partner of Baker Mckenzie, said, "Leveraging digital technologies to improve competitiveness and efficiency of operators is worthy of support, but relevant laws must be adjusted in time to adapt to the development situation, thus not hindering the rapid revolution of digital technologies."
Source: InfoQuest, by Pacharatorn Phoomkham / Sasithorn, translated by Xinhua Silk Road
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