The Stock Exchange of Thailand (SET) has announced a significant enhancement of its co-location services, aiming to provide all securities companies with access to them from the second quarter.
The SET has received frequent complaints about its trading system connection, noting that large or foreign brokers have an advantage in terms of a faster order sending speed than local brokers.
To solve this problem, the bourse is allocating its co-location services as a core infrastructure component, providing all member firms with access at no charge.
All member securities companies are eligible to request co-location space allocation and connectivity to the trading system. Member firms are responsible for external third-party costs, such as electricity.
SET president Asadej Kongsiri said the co-location services initiative aims to create a level playing field for all member firms and ensure equitable access for all investor groups.
"The SET can only control the speed of orders sent to the system open for connection. However, there are still factors beyond the SET's control, such as the technology and computers used by the brokers. Older models will be slower than new models," he said.
The initiative has three key components, with the first free co-location allocation for SET member firms, with access to co-location space and trading system connectivity at no cost to firms, excluding external third-party expenses.
Second is data transmission transparency. The SET will disclose each member firm's own data transmission statistics, benchmarked against the industry. This transparency will facilitate performance benchmarking and improvements for the benefit of investor clients.
The final component is an equitable data transmission study the SET will conduct to ensure equitable data transmission across all channels. The findings will be reviewed regularly and used to conduct further improvements.
"This enhancement will ensure fair and equitable access to SET co-location services for all members and investors," said Mr Asadej, adding the bourse collaborated with the Association of Thai Securities Companies (Asco) to hear feedback from member firms and stakeholders to ensure a level playing field for all investors.
Asco chairman Pichet Sithi-Amnuai said the initiative reflects SET's commitment to fair and equal opportunities for all stakeholders.
"The move will create significant opportunities for all members, benefiting their investor clients and enhancing service, competitiveness and industry development," he said.