The Stock Exchange of Thailand (SET) is set to move along with capital market stakeholders to achieve a two-day settlement cycle (T+2) in the first quarter of 2018.
The shortened settlement cycle is meant to reduce operation costs and risks across the industry and put it in line with global practices.
"We are confident our technology information system will be ready to roll out in the first quarter of 2018," said SET president Kesara Manchusree.
The move is a collaboration of the SET, securities firms, custodians and asset management companies who want to shorten the cycle to two business days from three to reduce industry risks.
"This change will enhance our competitive edge and align our operational process with international practice, which supports further globalisation and connection with international counterparties," she said.
By reducing the settlement cycle, stakeholders will reduce costs and minimise settlement risks by around 20% on average, said Mrs Kesara.
The move to T+2 will make cross-border portfolio management more convenient as the change aligns it with leading exchanges in Asia, Europe and the US.
To ensure a smooth transition, the SET, the Securities and Exchange Commission and Bank of Thailand worked together to adjust regulations and prepare operational processes.