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27 Jan 2017 17:19:00
SET News :SET targets moving toward T+2 settlement cycle in Q1/2018
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SET News 4/2017
 January 2017

SET targets moving toward T+2 settlement cycle in Q1/2018

BANGKOK, January 27, 2017 - The Stock Exchange of Thailand (SET), along with 
stakeholders in capital market, plans to move to a two-day settlement cycle
(T+2) to reduce operation costs and risks across industry as well as to be in
line with global practices. This new settlement cycle is planned to be launched
in the first quarter of 2018.

SET President Kesara Manchusree said, "SET, securities firms, custodian and 
asset management companies, has been working to shorten its settlement cycle of
securities trading to two business days (T+2) from currently three days (T+3)
with an aim to reduce risks across industry and enhance our competitive edge as
well as align our operational process with international practice which will
support further globalization and connection with international counterparties.
By reducing settlement cycle, stakeholders will benefit from efficiently
reducing costs and minimizing the settlement risks by around 20% on average."

"Benefits from moving toward T+2 will not only reduce the risks and cost for 
investors but will also be more convenient for investors regarding cross-border
portfolio management as the major changes among leading exchanges such as in
Asia, Europe, and the U.S. To ensure smooth transition, SET along with The
Securities and Exchange Commission (SEC) and Bank of Thailand have worked
together in order to adjust related regulations in parallel with the operational
process preparation. From discussion with related parties, the preparation
process should take almost 12 months, thus T+2 will be launched around Q1/2018."
 added Kesara

The adoption of T+2 settlement will keep SET aligned with the current and 
upcoming leading settlement practices around the world, where the T+2 settlement
 has been and will be widely used.

"SET? You Grow, We Groom"