Institutional customers
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Institutional customers
Broker's Loan
Money Market Loan
It is a loan to securities companies in the type of call basis or short-term lending. This lending will help meet short-term money needs, which will provide securities companies with flexible working capital.
Pledged Loan
It is a loan-term to a securities company with a fixed repayment date. Securities companies will pledge their own investment securities as collateral for loans with TSFC, which can be pledged through the TSD's system. The ownership of the securities is still owned by Securities companies, whereby TSFC will have preferential rights over such securities. If a securities company violates the agreement, TSFC has the right to enforce the pledge collateral to pay off the debt.
Loan to Broker for Margin Transactions: LBMT
It is a loan-term to a securities company with a fixed repayment date to enhance the liquidity of the securities company's credit balance transactions directly. The securities company can use the claim to be repaid under the credit balance contract as collateral for TSFC and will receive loans for the credit balance business. It uses a business collateral contract and registration with the Department of Business Development. Ministry of Commerce which does not require the transfer of possession of the collateral according to the Business Security Act B.E. 2558, however, TSFC will have a preference over such collateral If the securities companies violate the agreements between them.
Securities Repurchase
It is another type of secured lending whereby the borrower sells his or her proprietary securities, bonds and equities to TSFC with the promise of repurchase at a specified time and the repurchase price will be equal to the sale price, plus interest for the period specified in the contract. The ownership of the securities will be transferred to TSFC on the date of purchase of the securities and transferred back to the borrower. When the borrower buys back the securities, the securities to be sold will be “Hair Cut” and mark to market at the end of every business day to call for more collateral value.
Securities Borrowing and Lending (SBL)
A SBL transaction operator must have a business license from the SEC and can act as an intermediary (principal) or agent between a lender and a borrower of securities. As for TSFC, TSFC will act as a Principal whereby TSFC will borrow securities from securities holders, namely major shareholders. or holder of institutional securities and will place the collateral at the collateral administrator or directly to the contracting party.
Support for single stock futures block trade transactions of securities companies (Block Trade Financing)
It is a form of financial support for securities companies to facilitate the customers of securities companies, buy Single Stock Futures Block trades. TSFC will open a Short Single Stock Futures (SSF) position on TFEX market to match with clients of a securities company holding a Long SSF position. At the same time, TSFC will buy that stock in the SET and hold until the SSF closes to hedge against SSF price movements in the TFEX market. The SSF shortlisted by TSFC and the shares acquired by TSFC must pass TSFC's selection, under the specified risk management criteria.
