Securities and Exchange Commission readies blockchain plan

With the help of consultants from the U.S., the Securities and Exchange Commission (SEC) is preparing a development plan for using distributed ledger technology, or blockchain, in securities trading as part of its efforts to foster digital development in Thailand’s capital markets.

Archinee Pattamasukhon, an executive at the SEC, said the regulator plans to present its development plan on distributed ledger technology (DLT) next week. Once released, the SEC would then convey information to the Capital Market Development Fund (CMDF) board next month to seek project financing.

The SEC has appointed Accenture as technology consultant and Baker & McKenzie as legal consultant for its DLT development plan. Both firms are from the U.S.

Thai financial institutions have been embracing blockchain during the past few years. The Bank of Thailand recently began using the financial technology to issue and sell government savings bonds, and would like to expand its use to other instruments.

Archinee said that the SEC’s objective in adopting DLT is to empower Thailand’s capital market to handle new trading services and the latest digital technology. It wants to facilitate market participants in joining the digitized platform.

“The SEC has set up a committee to oversee the DLT project to drive the whole capital market in the same direction,” said SEC Secretary-General Ruenvadee Suwanmongkol.

A single DLT platform would act as the avenue for clearing and settlement by securities companies. They would be able to connect through a single, seamless platform without having to shoulder a heavy investment cost to develop their own DLT system, she said.

Blockchain development requires a large investment, which is why the SEC is seeking funding from the Capital Market Development Fund. In other examples of blockchain adoption, banks and corporate customers have banded together to share the costs and the benefits.

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