Thailand Securities Depository to expand back-office services

Source: Thailand Securities Depository

Thailand Securities Depository Co., Ltd. (TSD) will provide clearing, settlement and back-office services for the derivatives market, support securities borrowing and lending (SBL), and collateral management business.

TSD's 2006 targets are to boost its e-Dividend clients to 80% of all shareholder list, provide share registrar service for 800 securities, play greater roles in the debt and the mutual funds markets and strive for 100% company participation in its scripless system. In addition, it will continue to focus on social activities.

TSD focus for 2006 will be on SBL, bond lending, collateral management and the private repurchase businesses. These services will improve the efficiency of the secondary bond market as well as risk management. In 2006, the TSD expects to provide registrar services for bond issues worth THB159 billion (approx. USD3.88 billion) in total.

Furthermore, the TSD will provide clearing and settlement services to the derivatives market, as Thailand's derivatives market will become operational in April 2006. The Thailand Clearing House Co. Ltd (TCH), a TSD subsidiary, will provide the risk management and clearing processes designed to be user-friendly for all relevant parties, including the 12 derivatives brokers.

In 2006, the TSD will remain active as a depository, and be the clearing and settlement center for bonds, as designated by the Ministry of Finance (MoF) to encourage bond market liquidity pursuant to the aims of the Bond Market Development Plan II (A.D. 2005 - 2014).

On investor services, campaigning to promote its e-Dividend service will also be continued. TSD successfully boosted the total number of e-Dividend clients to about 57% of the total number of shareholder list this year. Thus, the number of e-Dividend users increased from 258,395 persons at end-2004 to 766,829 at present, representing an impressive 235% rate of growth. For next year, TSD is aiming for 80% of all interest and dividend recipient list to be paid through its e-Dividend service.

The TSD will develop the "Investor Card" to enable investors to access information on their portfolios and related benefits more conveniently. There will also be new services developed in conjunction with the commercial banks and the Thai Investors' Association to enlarge Thailand’s investor base.

In 2006, the TSD aims to become registrar to issuers of about 800 securities, including its current clients. In 2005, its securities registrar clients numbered 550 companies, an increase of 31 companies or 6% over 2004. This year 688 securities were provided TSD's registrar service. This was an increase of 29 securities or 4% over 2004. The TSD has also provided its fund registrar service to 83 funds (up 38%) from 10 asset management companies.

In 2005, the TSD provided registrar services for baht-denominated bonds worth THB 7 billion issued by the Asian Development Bank (ADB) and the Japan Bank for International Cooperation (JBIC).

Concerning TSD's securities depository business, currently there are approximately 71% of the total number of securities in its scripless system. The TSD has also developed its securities depository service for government bonds, hence integrating its equity and debt depositories.

In addition to its core businesses, the company will continue to take part in making social contributions. In 2005, it hosted a number of events and projects, including chess competitions, a classical music performance and those helping social foundations. The TSD will continue to provide socially responsible activities to the best of its ability, in order to be a model for other organizations.

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