SET Board Of Governors Approves Additional Measures To Boost Investor Trust And Confidence, Together With The Guidelines To Improve And Promote The Business Potential Of Listed Companies

The Board of Governors (BoG) of The Stock Exchange of Thailand (SET) has endorsed the details of the previously approved measures concerning market surveillance aiming to boost investor trust and confidence, as well as the additional measures for improving and promoting the business potential of listed companies which are in line with SET’s strategic plan to deliver the market quality with sustainable growth. Those measures can be summarized as follows:

Measures concerning market surveillance aiming to enhance supervision of the Naked Short Selling and Program Trading, particularly, High-Frequency Trading (HFT). The investors using HFT will be required to register and submit the filings with SET to declare themselves. At the same time, securities companies will also be required to have Pre-Trade Risk Management (PTRM) in place to ensure the availability of securities held by investors before sending their selling orders. In addition, the Minimum Order Resting Time will be imposed to set up the new standard for sending the orders which purports to prevent inappropriate trading behaviors.

The measures concerning market surveillance are currently during the public hearing process and are expected to be submitted to seek approval from the Securities and Exchange Commission (SEC) within the 2^nd quarter of this year.

Measures for improving and promoting the business potential of listed companies focusing on gathering and disseminating data relating to listed companies’ business operations, industry competitiveness, and industry conditions, especially those being classified to be in the new economy industry group according to the government policy, through SET’s channels and various media. In addition, SET will provide not only information but also financial support to participating research houses to produce reports on industry analysis & outlook. SET will further coordinate with relevant organizations (such as the Federation of Thai Industries, and the Thai Chamber of Commerce) to integrate data that can help analyze strengths and weaknesses, as well as formulate strategies for promoting various industry groups, in particular the new economy industry group, more efficiently.

SET will continuously collaborate with all parties and provide useful information to investors to boost the trust and confidence in the Thai capital market.