Thailand SEC Plans DLT-Based Debt Trading System

According to Odaily, the Thailand Securities and Exchange Commission (SEC) is preparing to implement a Distributed Ledger Technology (DLT)-based debt instrument trading system. The initiative aims to encourage securities companies to engage in digital token trading. SEC Deputy Secretary-General Jomkwan Kongsakul stated that the regulatory body has approved four digital token projects and is evaluating two more, focusing on green tokens and investment-driven plans. Kongsakul explained that purchasing bonds from the primary market currently takes 7-14 days before they can be traded in the secondary market. Investors face challenges such as limited access to certain products and high costs with low liquidity for some bonds. Issuers also deal with extensive manual paperwork, leading to delays and errors. Utilizing DLT is expected to enhance efficiency, streamline processes, and address obstacles in the capital markets. The SEC aims to fully digitize the bond trading system in both primary and secondary markets, covering settlement, trading, investor registration, and return payments. Kongsakul assured that competition will remain open, allowing companies with their own DLT infrastructure to establish independent chains, provided they ensure interoperability within unified standards. Other companies can access the SEC's public chain at an affordable cost. Looking ahead, multiple trading chains may emerge, all interconnected through shared ledgers, with completion anticipated soon. Existing financial products will be retained but converted into digital equivalents to facilitate smooth transactions on the DLT network. This approach promotes fractional trading at lower costs and enhances liquidity by introducing more participants, enabling real-time trading and reducing settlement issues. Additionally, the SEC is developing the SEC Open API data platform to provide comprehensive data on all listed companies, aiding investors in better analysis and more informed investment decisions.