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The Board of Governors (BoG) of the Stock Exchange of Thailand (SET), at its meeting today, approved the revision framework for confidence-building measures initially implemented in 2024. The Board has thoroughly considered holistic approaches and measures to ensure appropriate implementation aligning with prevailing market conditions, aiming to strengthen investor confidence and create stability in the Thai stock market. As the next step, SET will conduct a public consultation with stakeholders before submitting the proposals to the Securities and Exchange Commission (SEC) for approval. Implementation is expected by the late second quarter of this year.
Key highlights of the approved measures include:
(1) Short-selling Supervision
- Revised eligibility for short-selling to include only SET100 index securities, compared to the current criteria which allow short-selling of both SET-100 securities and qualified non-SET100 securities (those with a three-month average market capitalization of at least THB 7.5 billion (approx. USD 222.24 million), minimum monthly turnover of 2 percent over 12 months, and minimum free float of 20 percent of paid-up capital).
- Introduction of a conditional uptick rule: Zero-plus tick will be the default, but will switch to the uptick rule when a stock's price falls beyond a specified threshold (e.g., ≥X% from the previous day's closing price) for the following trading day.
(2) High Frequency Trading (HFT) Regulations
- Registered HFT participants will be eligible to trade only SET100 stocks, with exceptions for market makers and certain security types.
(3) Relaxation of 2024 Measures
- Revocation of the Minimum Resting Time measure.
- Postponement of Phase 2 implementation of the Dynamic Price Band measure.
To ensure policy confidence, SET will maintain both existing and newly revised measures until the next review in 2026.
