Bangkok, 15 November 2019 – The SEC has announced the Master Blueprint for Thai capital market, which includes the launch of Distributed Ledger Technology (DLT) as the new digital platform for capital market transactions to increase efficiency, reduce costs and facilitate market accessibility. The DLT pilot project will apply to corporate bond business.
SEC Secretary-General Ruenvadee
Suwanmongkol, as chair of the Digital Infrastructure for Capital Market
Steering Committee established by the SEC, said that the Steering Committee had
convened the first meeting on 6 November 2019 to consider the Master Blueprint
and guidelines for driving forward implementation plans.
“The
Master Blueprint contains the overview of how the Thai capital market can apply
DLT to various processes, from issuance and offering for sale in the primary
and secondary markets to post-offering processes related to corporate bonds,
SME shares, mutual funds and derivatives. The new digital platform also covers
clearing and settlement, register of instrument holders, custody of instruments,
and payment of interest or dividends.
“The pilot project will be conducted on corporate
bond business that is usually subject to high costs and time-consuming,
complicated processes. The DLT platform can reduce costs and increase
efficiency, transparency and competitiveness of business operators. Meanwhile,
it can also help issuers and investors in terms of cost-effectiveness and
market accessibility,” added SEC Secretary-General.
Launched
on 3 September 2019, the DLT project is driven by the Digital Infrastructure
for Capital Market Steering Committee, which is chaired by the SEC and consists
of members from several organizations; for example, the Fiscal Policy Office,
the Stock Exchange of Thailand, the Association of Securities Companies, the
Association of Investment Management Companies, the Thai Bond Market
Association, the Thai Bankers Association and the Association of International
Banks. Accenture Solutions Co., Ltd. and Baker Mckenzie Co., Ltd. are the
project advisors.
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