Straight Through Processing The Success Story in TSD

Straight Through Processing The Success Story in TSD 1

AGENDA n Force Driving for STP n TSD Success Story & Current State n STP Processing Flow n Future Development Paths 2

Future Present Force Driving of Change Drivers Centralized securities depository Elimination of manual intervention Lack of standard Reduced Operational Costs & Risks 3 Changes Outcome OTC Transaction /RTGS Pre-Settlement Matching Corporate Action STP

Before TSD Success Story & Current State Pres Benefits ent ring of government bonds has been done at the whereas for corporate bonds at the TSD 4 Since 15 May 2006, the depository of public debt securities has been migrated from the BOT to TSD The centralization of the securities deposi clearing and settlement system will help im and reduce the cost of securities clearing

Way of Success TSD Success Story & Current State (Continued) TSD adopted STP for 1) OTC Transaction for Government Bond 2) RTGS in Bond & Equity OTC Transaction (With/Without Payment) 5 Clearing & Settlement from Trading (Gross Settlement)

STP for OTC Transaction Transfer Without Payment (Delivery Free Value Added Automated End-to-End 1 1 MT 542 (DF) Member A 4 (Transferor) MT 546 (DF Confirm ) 2 3 Debit Member A A/C 6 Integrated Front to Ba Match DF & RF MT 540 (RF) Member B (Transferee) 4 MT 544 (RF Confirm ) 3 Credit Member B A/C

STP for OTC Transaction Transfer With Payment (Delivery Against Pa 1 1 MT 541 (RVP) MT 543 (DVP) 2 Match DVP Member B Member &RVP 3 (Transferee) A Hold Bond 6 7 7 MT 547 (Transfer (DVP Confirm) MT 545 Debit Member (RVP Confirm) or) A A/C MT 298/103 Credit 5 MT 298/107 4 (Payment Request) (Response Message) Member B A/C BOT 7

Clearing & Settlement from Trading Automated Processing from Trade Inception to Settlem (Gross Settlement) Payment Req Member A Confirm TSD Exchange Payment Request Clearing & Execution Settlement Member B 8 Confirm BOT Payment (Cash) Confirm/Reje ct Settlement Bank Confirm/Reje

Benefits for Improving Market Liquidity Minimize Processing Time for Members (Sellers & Buyers) to Increase Trading Turnover Enhance Efficient and Reliable Clearing & Settlement system to increase investors confidence 9 Pave the way for possible regional central securities depository or clearing and settlement linkage in the future.

Future Development Paths n Pre-Matching : SWIFT Message (Q 2 Elimin Reduc Shorten 2009) Value ation e S Proposit ion of manual activiti es Elimin ation of manual activiti es n. Corporate Value Proposit ion 10 o peratio nal risk ettleme nt Cycle Action: SWIFT Message (Q 3 2 Reduce op erationa l cost Shorten Time

Future Development: Pre- Matching Pre-Matching : SWIFT Message for Matching instructions between custodian and broker/ custodian and Current Future custodian n Manual key- In 2 Steps TSD Manual key- In 2 Steps 11 Investors SWIFT TSD Match SWIFT Investors

Future Development: Corporate Action n Members will receive Corporate Action via SWIFT Message Current TSD SET Issuer Future SET TSD SWIFT Download Members Re-key/SWIFT Members SWIFT Stakeholders 12 Stakeholders Issuer

Thank You www. tsd. co. th 13