The Stock Exchange of Thailand (SET) and its derivative arm TFEX have successfully replaced their entire technology platform for derivatives trading and experienced their second-highest daily number of contracts traded ever, on the very first day of trading. This comes on the heels of a similar technology replacement for equities trading, which led to volume increases, leading low latency and state-of-the-art functionality. The Stock Exchange of Thailand selected Cinnober Financial Technology as its partner in this comprehensive replacement of trading infrastructure.
With derivatives trading functionality now implemented, SET performs both equities and derivatives trading on the very same system, SET CONNECT, which is based on Cinnober’s TRADExpress Trading System. Trading on equity markets has been in production since September 2012.
“A comprehensive and flexible system solution is very much decisive for being able to maintain a leading market position,” says Mr. Charamporn Jotikasthira, SET President. “New conditions and regulations require transparent and reliable technology. Cinnober has contributed invaluable know-how and experience in the build-up of this new platform, based on an international standard solution that has been adapted for the Thai market.”
Cinnober has delivered several core systems to SET since the agreement was signed in June 2011. Phase two covering the derivatives market — just like the equity market — includes functionality for trading, market data, and surveillance. This single-platform solution has been built out for derivatives, and also provides extensive operational advantages – through connectivity and the ability to send combination orders for equity and derivatives, for example – as well as comprehensive risk management capabilities.
“SET’s recent growth has bolstered their position as a leading exchange in the region,” comments Cinnober’s CEO Veronica Augustsson. “SET has fully realized the importance of prioritizing new and flexible technology with high quality, in order to maintain a leading position and to be able to fulfill current requirements. The project has resulted in fantastic engagement from everyone involved, and we look forward to SET members reaping the benefits of having a single system for equities and derivatives.”
Cinnober is a world-leading supplier of financial technology to marketplaces and clearinghouses. The client list consists of major global players with extreme demands on reliability and performance, including names such as BM&FBOVESPA, Deutsche Börse, Dubai Gold & Commodities Exchange, the Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, Quadriserv and MarkitSERV.