The Stock Exchange of Thailand (SET) is set to implement a more rigorous regulatory regime for member brokerages, introducing a more stringent fine structure effective November 1, 2024. This move is part of SET's broader initiative to strengthen its regulatory mechanisms and ensure strict adherence to trading rules.
Brokerage violations are classified into four categories: 1) trading systems, program trading, installation sites, and hardware network connection, 2) system-based trading supervision by members, 3) membership qualifications and duties, and 4) trading activities.
Fines have been significantly increased to better reflect the severity of offenses and their potential market impacts. Notable changes include the fine penalty against naked short-selling offenses which now triple to three times the illicit profits, with a new minimum penalty of THB 1 million (approx. USD 30,030). This represents a substantial increase from the existing scheme, which merely matches the profit without a baseline fine. Additionally, brokers failing to make timely margin calls will face fines of THB 30,000, up from the previous threshold of THB 10,000.
The new framework has been approved by the Securities and Exchange Commission following extensive market consultations.
For more information on updated regulations, please see the “Circular Letters for Member” topic under the “Rule and Regulations” section on the SET's website at www.set.or.th.
