Mr. Kittiratt Na-Ranong, President of the Stock Exchange of Thailand, revealed that, "The SET held a meeting to study opinions and suggestions from brokers, sub-brokers, asset management companies and the Association of Securities Companies on the 2nd of October. Several suggestions raised during the meeting were incorporated into the adjustment that will take effect on November 5th onwards. The newly adjusted spread will not have a negative effect to investor confidence. On the other hand, this adjustment will help propel greater trading and assist investors increase trade on various price level. Furthermore, it will help securities trading at lower than 10 baht, of which there are nearly 200 securities, to be more liquid."
The adjustment of the spread this time, has rate of change of securities at different categories stand at 0.5 percent to 1 percent, which is close to the rate of change of the price spread which are currently being used. The new spread will be as follows:
Securities trading at less than 50 baht will be set into five groups:
- Securities trading at less than 2 baht
Spread of 0.01 baht - Securities trading between 2 up to 5 baht
Spread of 0.02 baht - Securities trading between 5 up to 10 baht
Spread of 0.05 baht - Securities trading between 10 up to 25 baht
Spread of 0.10 baht - Securities trading between 25 up to 50 baht
Spread of 0.25 baht
Securities with trading price from 50 baht to 200 baht, the spread remains the same as follows:
- Securities trading between 50 up to 100 baht
Spread of 0.50 baht (same) - Securities trading between 100 up to 200 baht
Spread of 1 baht (same)
For securities trading price above 200 baht, the prices will be according to new spread as follows:
- Securities trading between 200 up to 400 baht
Spread of 2 baht - Securities trading between 400 up to 800 baht
Spread of 4 baht - Securities trading above 800 baht
Spread of 6 baht
The SET will test trading system under the new spread adjustment with related parties by the end of October in preparation for the new spread.
