The Securities and Change Fee (SEC) of Thailand is about to introduce a debt instrument buying and selling system powered by distributed ledger expertise (DLT) to encourage securities companies to have interaction in digital token buying and selling whereas enhancing regulatory oversight within the digital period.
Jomkwan Kongsakul, Deputy Secretary-Common of the SEC, famous that token investments are gaining momentum.
The regulator has authorized 4 digital token initiatives and is presently reviewing two extra, with a deal with inexperienced tokens and investment-based initiatives.
Moreover, 5 different events have consulted with the SEC on potential fundraising options, together with mushy energy tokens and inexperienced token improvements.
Within the close to future, securities corporations in Thailand might be allowed to commerce digital tokens to leverage their in depth investor bases, in accordance with Jomkwan.
“The SEC is leveraging expertise to reinforce effectivity within the capital market by selling an digital securities ecosystem,”
she mentioned.
“Sooner or later, new rules might be launched to facilitate the issuance of digital securities and on-line purchases of debentures.”
At present, buying bonds within the main market takes between 7-14 days earlier than they are often traded within the secondary market.
Buyers additionally face challenges corresponding to restricted entry to sure merchandise, excessive prices, and illiquidity. In the meantime, issuers cope with guide knowledge processing, which results in delays and errors.
Using superior expertise is predicted to streamline these processes, making them quicker and extra correct.
The SEC goals to completely digitalise bond buying and selling for each the first and secondary markets, protecting settlement, buying and selling, investor registration, and return funds.
Competitors will stay open, Jomkwan mentioned, as companies with their very own DLT infrastructure can develop unbiased chains, supplied they adhere to a standardised framework making certain interoperability.
Corporations with out their very own chains can use the SEC’s public chain at an affordable value.
“Sooner or later, there could also be a number of chains for commerce. Buying and selling by DLT on all techniques is linked by a shared ledger, which is predicted to be accomplished quickly,”
Jomkwan Kongsakul mentioned.
Two varieties of securities issuance will emerge: digital-native merchandise created straight on DLT and conventional merchandise transformed into digital type.
The latter will perform as twin merchandise that may be traded throughout the DLT system, enabling fractional buying and selling, decrease prices, larger liquidity, real-time transactions, and lowered settlement points.
Moreover, the SEC is growing the SEC Open API knowledge platform, offering entry to info on listed corporations to assist traders make extra knowledgeable selections.
Featured picture credit score: edited from freepik
