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Financial markets

Thailand's Stock Exchange Upgrades Trading Infrastructure with Nasdaq Systems

Strategic Insights

— 1 min read

The Stock Exchange of Thailand (SET) has expanded its collaboration with Nasdaq, adopting advanced systems to enhance efficiency and investor confidence. The partnership aims to elevate Thailand's market infrastructure, regulatory framework, and risk management, while incorporating artificial intelligence (AI)-powered trading solutions. The upgrades are expected to lift international investor confidence and prepare for next-generation technology. The SET has employed Nasdaq-developed trading systems since 2023, meeting international standards for performance, resilience, and reliability.

Key Takeaways:

  • The SET and Nasdaq have expanded their collaboration across multiple fronts, focusing on market infrastructure modernisation, regulatory oversight, and risk management.
  • The adoption of Nasdaq-developed trading systems has enabled the SET to meet international standards for performance, resilience, and reliability since 2023.
  • The partnership aims to develop innovative offerings for Southeast Asian clients, demonstrating the SET's technological capabilities.
  • Past challenges such as naked short selling in the US and Thailand have provided valuable lessons for the SET and its participants.
  • Nasdaq infrastructure delivers tight spreads, deeper liquidity, and lower transaction costs, setting it apart globally.
  • The SET's collaboration with Nasdaq plans to introduce fractional share trading, enhanced functionalities, and 24-hour trading, strengthening investor confidence and positioning Thailand as a competitive market.

Statistics:

  • Since 2023, the SET and Thailand Futures Exchange have employed Nasdaq-developed trading systems.
  • 45 years: The time since Nasdaq's inception in 1971.
  • 24 hours: The target operating period for trading, aligned with growing retail participation around global events.
  • 95%: The reduction in transaction costs achieved by Nasdaq infrastructure (according to the SET).
  • 99.9%: The uptime of the Nasdaq platform (according to Phil Mackintosh, chief economist at Nasdaq).
  • 100x: Nasdaq's scalable infrastructure, allowing it to handle immense trading volumes (as mentioned by Phil Mackintosh).

Sources:

  • "Thai bourse partners with Nasdaq for global market infrastructure upgrade" (Source: Reuters, no date)
  • Soraphol Tulayasathien, senior executive vice-president of the Thai bourse (Source: The SET, no date)
  • Phil Mackintosh, chief economist at Nasdaq (Source: Nasdaq, no date)
  • Thirapun Sanpakit, senior executive vice-president and head of IT at the SET (Source: The SET, no date)

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