The Stock Exchange of Thailand (SET) and Cinnober signed an agreement in June under which Cinnober will deliver several core systems to SET, replacing SET’s trading, market data and surveillance systems. Cinnober won this contract in direct competition with all major exchange technology suppliers. 

The new systems will start to go live in 2012 for equities, and 2013 for derivatives. Significantly, equities and derivatives trading will be performed on a single platform, based on Cinnober’s TRADExpress Trading System. Similarly, Cinnober’s Scila Surveillance will monitor both equities and derivatives from a single integrated system on a single server. SET’s new market data dissemination system will also be based on TRADExpress Information Manager.

“This is an investment in worldclass technology that will not only boost the Thai capital market’s efficiency and vitality, but also help bring in more business opportunities for SET and its market participants while helping cut overall operational costs,” said Charamporn Jotikasthira, President of the Stock Exchange of Thailand. “Our own internal IT strength combined with Cinnober’s cutting-edge technology and expertise will bring SET’s competitiveness to a whole new level.” 

The Stock Exchange of Thailand, which has been operating since 1975, set up an aggressive IT Master Plan for the coming years after conducting an eight-month evaluation. With Cinnober’s technology, Thai bourse can offer superior transaction speed to support high-frequency and algorithmic trading and provide the use of industry standard interfaces which will make it easier to accommodate linkage with other marketplaces to attract further liquidity. 

TRADExpress is a multi-asset execution system that delivers market-leading functionality, speed and throughput capacity, which can easily be extended and scaled up on demand. 

“This will make it possible to introduce new products and services much easier and faster to meet the demands of the market,” Mr. Jotikasthira added in his speech during a contract signing ceremony in Bangkok. “This marks another major step closer towards SET’s goal of becoming a major regional player in the provision and operation of capital markets. Scila Surveillance will also enable SET to be more responsive and promote confidence in the market by maintaining a level playing field for all parties.” 

“We’re glad and very proud to be entering this partnership with SET,” commented Nils-Robert Persson, Executive Chairman of Cinnober. “This is an important milestone in Cinnober’s increased global reach. A trading venue’s technology is more important than ever today as speed, performance and flexibility have become essential. Markets everywhere must be able to act quickly on changes and maintain their ability to shape their own destiny. I would say that SET now has created great prospects for this and we’re looking forward to a long and successful relationship with a very exciting marketplace.”