Pursuant to The Stock Exchange of Thailand (SET) Board of Governors (BoG)’s resolution to approve the additional measures to reinforce short selling and high frequency trade (HFT) or program trading supervision, and more information disclosure to the broker members to tighten supervision and boost investor confidence, SET conducts hearing on “Enhancement of Regulatory Measures” as follows:
- Measures to regulate short selling to reduce price fluctuation likely affected by short selling activities by revising qualifications of securities eligible for short selling and imposing uptick rule on short selling in case that the securities price declines.
- Measures to regulate program trading to better regulate and closely monitor investors who use HFT by requiring them to register with SET. Moreover, the minimum order resting time will be imposed to slow down or prevent the too frequent cancellation of trading orders to prevent inappropriate trading orders.
- Disclosing information of investors with inappropriate trading behavior to all broker members to increase efficiency in supervising these investors in accordance with the Association of Securities Companies (ASCO)’s requirements such as reducing credit limits or requiring them to trade through the specific traders.
- Increasing fines on broker members to reinforce the supervision of those who breach the regulations or are not compliant with the stricter rules and regulations.
The hearing is aimed to solicit opinions from stakeholders in order to obtain useful information to take into account when revising the related rules and regulations. Market consultation and details are available on SET’s website https://www.set.or.th/en/rules-regulations/market-consultation at “Enhancement of Regulatory Measures” menu. Opinions and suggestions are welcomed at https://forms.gle/MAaxwe5PaRUBpwt69 until April 21, 2024.
