The Thailand Futures Exchange epitomises the growing
international ambitions of regional exchanges with its
investment in a new trading and clearing platform.
The new systems, developed in conjunction with Cinnober on
the trading side and the Korea Exchange in clearing, provide
cross-asset class trading efficiently and can support
multi-currency and multi-market trading.
The new trading platform allows for low-latency execution of
numerous asset classes of underlying. In addition it will
enable a shorter time to market to introduce new products and
brings significantly higher capacity.
But it was the clearing system that won the judges praise in
particular. The TCS clearing system is a customised platform
based on the Exture+ clearing system currently used by
TCS was designed and implemented to be a consolidated
clearing and settlement system operational across both the
cash and derivatives markets.
The project was divided into two phases: Phase 1 for
derivatives and Phase 2 on the cash market.
As a result, the full development cycle, which included a
full analysis of requirements, design, development, testing
and go-live had to be repeated.
"It was a real challenge for all the developers as well as
for the business users who participated in this project to go
through all of these procedures without a break. The efforts
and energy that were put into this project were not just double
but exponential," says Honghee Shin, executive director, global
business development at KRX.
Shin says that one of the key challenges was that SET was
already operating a clearing and settlement system for its
cash and derivatives markets. Therefore the existing users,
including external users, were used to a certain way of doing
things and were comfortable using the legacy system.
"We had to satisfy both the adverse reaction of these users
as well as meeting their expectations for the new system, which
we think is one of our key strengths. We acknowledge that each
market has its peculiarities and we try to fully respect them,
customising and localising our solutions," says Shin.
TCS was built around the needs of the Thailand Exchange.
Innovations included the CSX module, a FIX-based
functionality that interfaces with internal and external
systems; a fully-customised position ledger; a flexible
approval structure that minimises the chances of errors or
malicious usage and a native web portal to increase ease of
access for members.
KRX is now looking to work with other exchanges to implement
its technology on a collaborative and bespoke basis.
"We can set up an exclusive clearing system solely for a
derivatives market, cash market or both markets according to
our clients’ demands," says Shin.
"If our customer has their own market and business
practices, we adjust our KRX clearing system to them, so it can
accomodate the previous system’s practices
"Lastly, our clearing system has the ability to
efficiently interact with other systems in different
protocols by using CSX, which can accommodate bilateral and
KRX offers a full suite of IT products across the exchange
infrastructure from post trade for derivatives to trading
systems for cash markets and surveillance systems and
For more information, contact:
Executive Director, Global Business
+82 2 3774 4202
Senior Manager, Global Business
+82 2 3774 4214
Hugo H. Yoo
Deputy Manager, Global Business
+82 2 3774 4215