Miss Sopawadee Lertmanaschai, Senior Vice President, Head of Market Operations Division of the Stock Exchange of Thailand, said, "The SET is adjusting the minimum change in securities prices to more appropriate levels. Securities price under 10 bath per share will be allowed to have price movements of 0.01 bath (1 Satang) compared to 0.10 bath currently. Securities price of 10-50 baht per share will be divided into two groups, and the spread will differ. Securities price at 10-25 baht per share will be allowed a minimum price change of 0.05 baht each time, while spread of securities price of 25-50 baht is 0.10 baht. Furthermore, the spreads of four trading prices groups are reduced. Securities price of 50-100 baht per share will have their minimum price change adjusted downward from 0.50 baht to 0.25 baht. Securities price of 100-200 baht per share will have the minimum price change reduced from 1.00 baht to 0.50 baht. Securities price of 200-400 baht per share will have a reduction in the minimum price change from 2.00 baht to 1.00 baht. Securities price of 400-600 baht per share will have a minimum price change of 2.00 baht. Securities price of 600- 1,000 baht per share will have a minimum price change of 4.00 baht (the same as now) and securities trading at a price of over 1,000 baht or higher, will maintain the current minimum price change of 6.00 baht."
The new spread will become effective from October onward. Time is needed for the SET and other concerned parties to prepare computer systems and operational systems. The SET has already informed member companies and other concerned parties of this matter, and preliminary preparations have already begun. "The reasons for making adjustments in the new spread is to increase liquidity in securities and to support securities that trade at very low prices. Limitations on price changes can lead to a lack of liquidity in securities. Another reason for making adjustments on the new spread is a result of securities that have warrants attached, if these securities trade at very low prices the price of the warrants drops to a very low level. Thus when floor and ceiling prices are calculated it could lead to a situation where warrants cannot be traded. Therefore, the adjustments in this new spread should solve these problems." Miss Sopawadee said.
