Citi Thailand has been appointed by the Stock Exchange of Thailand (SET) to serve as a settlement bank for the 39 SET clearing house members.
According to the bank, in Thailand, all clearing members must use an appointed settlement bank to settle cash payment for all securities trades transacted on SET, MAI (smaller board), and BEX (bond). However, to qualify as a settlement bank, banks must not only provide a strong cash management infrastructure but also demonstrate a long-term commitment to the capital market and clients. The other settlement banks are Siam Commercial Bank, Bangkok Bank and Krung Thai bank.
Vira-anong Chiranakhorn Phutrakul, managing director, head of global transaction services, Citi Thailand, said: “We are proud to be the first foreign bank in Thailand to be appointed as a TSD settlement bank to perform the important function of securities clearing for the market. Citi will provide an end-to-end solution to the clients of brokers/sub brokers who use Citi as a custodian bank or for back office settlement processing. This is done through Citi’s technology platform, CitiDirect which provides secure, online access for transacting and to view reports.”
Sopawadee Lertmanaschai, chief marketing officer, market & post-trade services, SET, said: “The addition of Citi as our fourth settlement bank will provide more benefits for our clearinghouse members. Citi will enhance clearing system reliability and support for the Thai capital market. Not only does Citi bring a lot of experience it is also financially strong and meets SET requirements by having a reliable operating system amongst a number of other criteria.”
