Thailand: Implementation of T+2 settlement cycle

30.01.2018

Clearstream Bankingadvises customers that, effective

 2 March 2018

the Thai settlement cycle for all listed securities (scripless) trades will shorten from T+3 to T+2.

The change of settlement cycle has been a market-wide initiative spearheaded by the Stock Exchange of Thailand (SET) in order to meet international standards. The shortened settlement cycle is expected to reduce credit, market and liquidity risks and enhance efficiency of transactions.

Trading and settlement

The implementation date of the new settlement cycle in the Thai market is as follows:

Trade Date

Trade Day

Settlement Date

Settlement Day

Last T+3 trading day

28 February 2018

Wednesday

6 March 2018

Tuesday

First T+2 trading day

2 March 2018

Friday

6 March 2018

Tuesday

Note: 1 March 2018 is a public holiday in Thailand. Therefore, 6 March 2018 becomes the settlement date for both the last T+3 trading day and first T+2 trading day. In anticipation of a higher volume of securities settlements, the Bank of Thailand (BoT) is considering relaxing the daily ending balance for the NRBS account on that date.

Market participants, or clients of market participants, are expected to submit their settlement instructions by 09:00 Thai time / 03:00 CET on T+1 or SD-1 for further release into the pre-settlement matching system (PSMS) for auto-prematching before 12:00  Thai time / 06:00 CET on T+1 or SD-1.

Corporate actions

Corporate action ex-period under the new settlement cycle is as follows:

Under T+3 (existing)

Under T+2 (new)

Effective date for new ex-period under T+2

Record date

Ex-date+2

Ex-date+1

6 March 2018

Book closing date

Ex-date+3

Ex-date+2

7 March 2018

Impact on customers

Under the new T+2 settlement cycle, the settlement deadlines for listed securities (scripless) will change as follows:

Instruction

Current deadline

New deadline from 2 March 2018

Free of payment and Against payment book-entry settlement

Receipts

01:35 SD

02:35 SD-1

Deliveries

01:35 SD

02:35 SD-1

Note: All times are in Central European Time (CET).

Customers are requested to take note of the changes and to send timely settlement instructions to Clearstream Banking to avoid settlement delays.

Note: Cash, funding and foreign exchange deadlines will be unaffected by these changes.

Further information

The Creation Link Guide – Thailand will be updated accordingly.

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.