Bangkok, 21 May 2020 - The Capital Market Development Fund (CMDF) has signed a Memorandum of Understanding (MOU) in collaboration with SEC to support a digital infrastructure initiative for Thailand’s capital market. This initiative will develop the whole process of digital infrastructure of the capital market by adoptingDistributed Ledger Technology (DLT) or other digital technologies to the issuance and offering of securities, trading, clearing and settlement of securities and providing services to investors or other related services. The objective is to increase efficiency, reduce costs, increase transparency and facilitate access to the capital market for investors, issuers and business operators in the capital market. It will also be an important aid in driving the Thai Capital Market to compete in the digital economy and society, starting from developing the corporate bond system as a pilot project.
Dr. Chaiwat Wibulswasdi, Chairman, Capital Market Development Fund, revealed that the CMDF board has approved in principle by supporting the Thai Capital Market’s digital infrastructure under the cooperation of SEC, considered that a strong capital market infrastructure which process capability to support the changing economy and digital society could provide a solid foundation for further development of businesses for business operators in the capital market. This is in line with the objectives of the CMDF that call for the development of infrastructure while developing the competitiveness of the Thai Capital Market for the benefit of all sectors, including investors, issuers and business operators in the capital market.
Chanant Charnchainarong, Manager, Capital Market Development Fund, thanked SEC for initiating good and beneficial projects for the capital market in accordance with the objectives of CMDF. Under this cooperation agreement with SEC, a central infrastructure for capital markets will be developed to support the whole process of trading products in the capital market from the issuance, offering, trade to clearing and settlement of securities as well as enhance the efficiency of the Thai Capital Market industry. CMDF will consider providing grants to the main operators who are nominated and certified by SEC. Initially, the focus will be on developing a central digital infrastructure for debentures in the type of corporate bonds, after which there will be further development to support other securities transactions.
Ruenvadee Suwanmongkol, SEC Secretary-General, said the digital infrastructure initiative of the Thai Capital Market is a project initiated by SEC and launched on 3 September 2019 with the objective of improving the efficiency of the Thai Capital Market by adopting digital technology. SEC has worked with all sectors in the capital market, such as the Ministry of Finance, Fiscal Policy Office, Public Debt Management Office, Bank of Thailand, Stock Exchange of Thailand, Association of Thai Securities Company, Association of Investment Management Companies, Thai Bond Market Association and Thai Bankers' Association, for example, to drive the policy on bringing digital technology to develop the Thai Capital Market’s infrastructure by covering the whole process from issuance, offering, trading, clearing and settlement including investor services. In this regard, SEC would like to thank the Chairman and the CMDF committee for supporting the development of the Thai Capital Market’s digital infrastructure initiative. This project is the key factors innovation that increase efficiency to the capital market, support the New Normal, increase competitiveness and strengthen the whole country's economy. Under the said cooperation, SEC will consider nominating qualified persons for the development and management of the digital infrastructure of the capital market, while also recommending the application for funding from CMDF, promoting and cooperating with the main operators in the development of the infrastructure, as well as continuing to improve relevant laws or regulations.
The Capital Market Development Fund (CMDF) was established as a juristic person under the Securities and Exchange Act B.E. 2535 (1992), as amended by the Securities and Exchange Act (No. 6) B.E. 2562 (2019), with the primary objective of promoting the capital market development in four areas, including: 1) promoting the development of organizations and infrastructures related to the capital market including developing of the competitiveness of the capital market, 2) promote the development of the potential of personnel related to the capital market or supervision of the capital market, 3) enhance knowledge and understanding about the capital market, investments and capital market development for investors, citizens, agencies and related organizations, and 4) promote and support education, research, training and development of knowledge or academic work beneficial to the capital market.
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