The Stock Exchange of Thailand (SET) has upgraded its trading infrastructure and regulatory systems to meet international standards, following the integration of advanced Nasdaq technologies aimed at boosting efficiency and investor trust.
SET and Nasdaq have expanded their partnership to focus on modernizing market infrastructure, enhancing regulatory oversight, and improving risk management, while also exploring AI-driven trading solutions.
These enhancements are designed to increase international investor confidence and prepare for future technological advancements. The collaboration with Nasdaq aims to develop innovative products for Southeast Asian markets, showcasing SET’s technological capabilities, said Soraphol Tulayasathien, senior executive vice-president of the Thai exchange.
Since 2023, SET and the Thailand Futures Exchange have been utilizing Nasdaq-developed trading systems that meet global standards for performance, reliability, and resilience.
“Although the US and Thai markets differ in scale, there are valuable lessons to be learned from Nasdaq’s experience, where high liquidity, IPO innovation, and advanced trading solutions dominate,” noted Soraphol.
He also pointed out that past issues like naked short selling, which occurred in the US over a decade ago and recently appeared in Thailand, can provide insights through Nasdaq’s expertise.
Nasdaq’s infrastructure is renowned for tight spreads, increased liquidity, and lower transaction costs—attributes that set it apart globally. Since its founding in 1971, Nasdaq has been a pioneer in automation and modernization, with its INET software deployed worldwide. Its platform prioritizes resilience, scalability, transparency, and cost efficiency for issuers.
Phil Mackintosh, Nasdaq’s chief economist, emphasized that Thailand can learn from the US market’s technological innovations and emerging trends shaping global trading practices.
He highlighted Nasdaq’s strengths during market volatility, maintaining stable prices and liquidity amid fluctuations. Nasdaq is also investing heavily in AI, cloud migration, and tokenization, positioning itself to support 24-hour trading amid rising retail participation worldwide.
AI and machine learning are now integral to Nasdaq’s market surveillance, enhancing the detection of unusual trading activity while reducing false alarms, explained Mackintosh.
“Markets are evolving, and Nasdaq is committed to providing mission-critical solutions that support market structure, regulation, and risk management,” he added.
Thirapun Sanpakit, senior executive vice-president and head of IT at SET, noted that the CONNECT-MME platform launched in May 2023 has demonstrated strong performance, maintaining resilience during volatile trading periods and high volumes.
Advanced safeguards like dynamic price bands and auto-pausing features help ensure fairness, transparency, and investor protection.
Looking ahead, plans include introducing fractional share trading, additional functionalities, and 24-hour trading capabilities to bolster investor confidence and position Thailand as a more competitive exchange, he said.