Institutional Services

Tweet |

Direct Market Access (DMA)

Direct Market Access (DMA) is the trading method by which a member company allows eligible investors to enter trading orders via their electronic Order Management System (OMS) which are then sent to the brokers’ infrastructure. Customer orders pass through the member's risk management system before being routed and queued in the SET trading system. Only Automatic Order Matching (AOM) is allowed for DMA trading, and Trader ID “D9999” must be specified in trade orders. Importantly, a member must be granted prior approval before providing DMA services to clients.

DMA Channel

Regulations for trading through Direct Market Access (DMA)

Equity Trading
 

Trading supervision

The Member must arrange for risk control measures and minimum PTRM which apply to every single trading channel for standardization as follow:

• Risk control measures
  
  1. Have measures to protect clients’ confidential information;
  2. Arrange for risk control measures and a    Pre-trade Risk Management System to screen the orders before submission into the Trading System, and such system must consist of the screening filters prescribed by the SET whereby the suitability of such measures shall be regularly reviewed;
  3. Arrange for the management over which the Members has the authority to control and manage including the setting and changing of parameters in the Pre-trade Risk Management System whereby the suitability of such parameters shall be regularly reviewed;
  4. Have Kill Switch function for reject new orders and cancel existing orders in case of emergency.
  5. Have measures to prohibit another person to submit order for clients.
  6. Have trading transaction log keeping to be able to submit them to the SET upon the SET’s request.
  7. Make sure that clients acknowledge and comply with the regulations of the SET.
  8. Submit information in relation to the clients and the clients’ trading information to SET upon the SET’s request.

• Minimum PTRM controls are:
  
  1. Credit / Exposure Limit
  2. Maximum Value Per Order
  3. Maximum Volume Per Order
  4. Order Price Check 

Note: In case of requesting to use Algorithmic Trading, members are also requested to comply with the Algorithmic Trading rules.

• Clients using DMA must comply with all SET trading regulations.
  
  
• Relevant regulations:
   
  • Securities trading
    
    
    • Procedures on Trading, Clearing and Settlement of Securities in the Exchange B.E. 2560 (2017) 
    • Practice Guideline regarding Trading, Clearing and Settlement of Securities in the Exchange
      
      
  • Securities trading system
    
    
    • Standards of Trading of Securities through Trading System
    • Guideline on screening criteria of prospective Direct Market Access (DMA) clients

Approval Process for Direct Market Access (DMA) Connection

1. Member submits request form for connection to SET trading system via SCP Member Digital form https://www.setportal.set.or.th
    
2. Member conducts a system test and submits test results.
   
   
3. SET reviews the request form, supporting documents and test results. 
   
   
4. Member sends signed document and related documents to SET by hand to:
   
   Trading Operation Department, Fl.12
   The Stock Exchange of Thailand Building
   93 Ratchadaphisek Road, Din Daeng, Bangkok 10400
   
   
5. The approval decision is made by SET. After receiving approval from SET, the member will then be able to inform clients they can send trading orders via Direct Market Access.

The length of the approval process depends upon the accuracy and completeness of the member’s request form, supporting documents and test results.

Supporting documents required for the approval process	Type
When requesting approval from SET, submit the following forms and any related documentation as specified.
Request Form for Connection of the Company’s Computer System to the Trading System of The SET (Form MO-Member 1) to be countersigned by authorized person of the company. Details of pre-trade risk management controls (Form MO-Compliance1)
System Security Assessment Form (Form MO-Security1)
Certificate of Software in the member’s computer system by the Independent Software Vendor/Service Provider (Form MO-ISV1) ; to be countersigned by System Developer.
Application for the Program Trading/Algorithmic Trading Software (Form MO-PROG1) (In case of applying for using or providing Program Trading function).
Direct Market Access (DMA) Request Form (Form MO-DMA1); to be countersigned by authorized person of the company (In case of applying for providing DMA service).
Form for Reporting the Intention to Utilize the API User on the SET CONNECT System (Equity Market) (In case of increasing API users for new platform or function - additional costs may occur)

Members can submit forms and documents on Member Digital Form at https://www.setportal.set.or.th