Thailand's SEC to relax repo rules
26 August 2020 Thailand
Image: Maria_Savenko / Shutterstock.com
Thailand’s Securities and Exchange Commission (SEC) is preparing to allow securities companies to undertake repos and reverse repos with all types of investors in transactions in listed securities and unit trusts.
The SEC says that the move will provide additional liquidity management tools for capital market entrepreneurs and investors and allow market participants to make further use of the securities they hold.
Securities companies must have effective management, control and risk management processes in place to undertake repos and reverse repos, the SEC warns.
In this regard, the SEC issued a notification in accordance with the principles, accepting securities companies operating securities brokerage businesses.
Brokerage firms, investment advisors, underwriters, fund managers, providers of credit for securities business, and derivatives business operators will be allowed to undertake repos and reverse repos on the same basis as securities companies.
This has been done to create fair competition for entrepreneurs in the capital market.
The Capital Market Supervisory Board and the SEC have already approved the rule change in principles but are inviting industry stakeholders to express their opinions on the matter until 23 September.
The SEC says that the move will provide additional liquidity management tools for capital market entrepreneurs and investors and allow market participants to make further use of the securities they hold.
Securities companies must have effective management, control and risk management processes in place to undertake repos and reverse repos, the SEC warns.
In this regard, the SEC issued a notification in accordance with the principles, accepting securities companies operating securities brokerage businesses.
Brokerage firms, investment advisors, underwriters, fund managers, providers of credit for securities business, and derivatives business operators will be allowed to undertake repos and reverse repos on the same basis as securities companies.
This has been done to create fair competition for entrepreneurs in the capital market.
The Capital Market Supervisory Board and the SEC have already approved the rule change in principles but are inviting industry stakeholders to express their opinions on the matter until 23 September.
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