The Thailand Securities Depository (TSD) has initiated a post-trade integration project to raise STP rates and shorten the settlement cycle (currently T + 3) by linking its participants with its clearing and settlement, depository and securities registration functions and its back office and fund management service bureaux. The TSD expects the new integrated system to go live in the third quarter of next year.
The TSD added that connecting its platforms to back office systems at market participants would raise STP rates and help achieve a switch from settlement on T + 3 to settlement on T + 2, as well as helping to accommodate new market instruments such as derivatives and Asian bonds. Importantly, the TSD also says the integrated platforms will facilitate its own development of a Central Counterparty (CCP) service.
In June 2000, the TSD initiated a study of how to raise STP rates, as a prelude to shortening the settlement cycle from T+3 to T+2. The ultimate plan is to shorten the settlement cycle to T+1 for securities settled through the TSD.