The benefits of listing bonds on TBX
Currently, TBX plays the role of a bond trading secondary market. Listing on TBX maximizes benefits to all stakeholders, resulting in win-win transactions. From the viewpoint of retail investors, the most important gain is that they are able to easily trade bonds under the supervision of the Securities and Exchange Commission, Thailand. Trading on TBX generates price transparency; timely, adequate and accurate information to make wise investment decisions; and international standards of clearing and settlement. In the past, retail investors faced difficulties in accessing the right information prior to investing, as well as with the trading channel. These difficulties created an opportunity cost, raising transactional costs to investors. In addition, the minimum trading value for retail investors is THB 500,000 - 1,000,000 per transaction (depending upon the bank handling the trade), which considerably limits the number of investors. Thus, TBX lessens those unnecessary costs and becomes an alternative trading channel for retail investors who can invest in bonds through the securities firms with as little as THB100,000. Furthermore, investors can find trading prices, bond information, or research for investment decision via www.set.or.th. These great benefits increase the liquidity of the Thai bond market.
Turning to issuers, TBX disseminates information on corporate bonds, lessening the burden of such dissemination by issuers and helping them determine bond prices. Issuers are able to efficiently use TBX as their bond information center and for bond trading. All information and trades are disseminated via the TBX trading system, SET website www.set.ort.h , and SET information system to members, vendors and market participants as well as through print media such as books. These channels allow issuers to find their current bond prices and liquidity conveniently for their own account management. Listing of bonds on TBX creates trustworthiness and recognition for investors and other market participants, because they can access information and trade movement of all bonds via the TBX trading system. By doing so, listed bonds from small- and medium-sized issuers can become more visible, better-known, and more accepted than before. Thus, the firms can decrease their future costs of bond issuance and increase their investor. Recently, TBX has waived listing fees to further assist corporate issuers in lowering their costs.
In summary, listing bonds on TBX has many advantages to both retail investors and issuers-- by making prices transparent, disseminating information, increasing visibility of small- and medium-sized issuers, and increasing liquidity for the bonds listed.