SETTRADE.Com Co., Ltd. unveiled the trends in securities trading via the Internet and announced it would strive to develop its technology for Internet trading and provide comprehensive information services for equity, bonds, and derivatives.
CEO of SETTRADE.Com, Ms. Chanisa Chutipat, announced that the Internet trading business in Thailand has greatly expanded and looks to continue on a rising trend. Currently, there are 29 brokers providing the service. Total securities trading via the Internet, as of Q1/2005, accounted for 6.82% of total trading in the market. There are 73,903 Internet trading accounts, representing approximately 20% of the total retail accounts, which currently stands at 420,000 accounts.
"We believe that Internet trading still has a lot of growth potential. The contributing factors include a high proportion of retail investors in the Thai market (60% of the total), a significantly high (3-year) average growth of Internet users of 26% per year, expansion of the Internet infrastructure leading to faster rates of transmission and better international linkages, as well as the growth of broadband Internet.
"The most important factor is the government's support. The master plan to develop information and communication technology (ICT) in Thailand has already been drafted. We expect the value of Internet trading to reach 10-15% of total trading each year sometime during the next five years," Ms. Chanisa said.
Ms. Chanisa went on to say that, as a technology provider for the capital market, SETTRADE.Com has been studying and developing both trading and information systems to provide facilities beyond equity or mutual fund trading.
"Within a year, SETTRADE's system will be able to cope with trading in the bond and derivatives markets," she reported.
"With more investment alternatives, there'll be more groups of clients including dealers and banks, in addition to brokers and investors and each customer group's needs are different," she continued.
Ms. Chanisa also noted that: "SETTRADE will be developing our services to be better responsive to changes. We'll provide total solutions, which means multiple services, e.g. online trading and information services, to serve all client groups or multiple users in multiple markets (equity, bonds, and derivatives).
The key success factor is an extension of our services to cope with greater demands. First of all, we need further infrastructure and system development. These foundations must be able to link all related parties' systems efficiently and be able to cope with future expansion as well.
"Second, there should be customized services for the different needs of our varied customers. SETTRADE is focusing on customizing its technology to match its users' lifestyles, hence making their lives easier and more convenient.
"Furthermore SETTRADE is utilizing technology to provide enhanced services. For example, information in text form has been upgraded to multi-media and video-on-demand services, enabling investors and the interested public to gain information from home via broadband Internet 24-hours a day without having to physically attend a seminar at the SET Building.
"In addition, SETTRADE is building its alliance network for both its technology and its information sides to help create value in, and add to the attractiveness of, its goods/services, which will help maximize the benefits our customers receive.
"Currently, SETTRADE provides its Internet trading systems to brokers, develops investment technology for investors and relevant organizations, and also acts as one of the SET's information vendors. Its services relate to both trading and online information via computers and mobile devices," she concluded.