The Stock Exchange of Thailand (SET) Board of Governors has approved measures to strengthen trading supervision. The implemented measures include the disclosure of short selling outstanding and uncovered positions for each securities already come into effect since April 2024, as well as additional guidelines for improper trading practices. SET has also sought public opinions to further adjust the "quick win" measures.
SET is now launching a public consultation on "Enhancement of Measures to Prevent Inappropriate Trading Behaviors and Reduce Price Fluctuation". The aim is to strengthen market supervision, promote transparency and fairness for all investors, in line with SET's strategic plan to elevate Thailand's capital market quality for sustainable growth and bolster investor confidence as follows:
1) Introduce automatic trading halt (Auto Halt) for each securities if aggregate volume of bid or offer exceeds 15 percent of its total listed shares to prevent potential irregular order matching as part of governing inappropriate trading behavior.
2) Introduce dynamic price bands of +10 percent from the latest execution price, in addition to the current ceiling and floor limit, in order to curb abnormal price volatility over a short period.
3) Enhance market surveillance measures in cases that trading of securities have
deviated from its normal condition without fundamental grounds. Currently, the measure has been classified into three levels. SET proposes to replace the current auto order matching with auction trading starting from Level two onwards, in addition to existing measures. This is to reinforce supervision effectiveness, reduce price volatility and protect investors.
The public consultation aims to obtain constructive feedback to further improve the relevant regulations. Details of the consultation paper are available at SET's website at https://www.set.or.th/en/rules-regulations/market-consultation titled "Enhancement of Measures to Prevent Inappropriate Trading Behaviors and Reduce Price Fluctuation". Comments can be submitted via the link https://forms.gle/ZxhiS7mRF4Yb9nJN9 until June 9, 2024.
