"The SET insisted that the net settlement system for all securities on the Exchange will not be removed. We would like to make it clear that the SET has market surveillance schemes, such as notifying members to review their credit policies in granting securities trading credits for some groups of investors, prohibiting trading on margin, prohibiting trading on net settlement on selective securities, and prohibiting members from receiving trading orders from some groups of investors."
Prohibiting the net settlement is just one of schemes that helps to prevent potential damages likely to occur to investors investing in highly speculated securities. Nevertheless, even when the net settlement is applied, investors can still invest in securities but not on a net buy-sell settlement basis within a single day. They would have to pay for the securities before receiving their sales returns from member companies on the third business day after they bought or sold the securities," Ms. Patareeya said.
The consideration to impose any measures will be based on what would be appropriate for the particular unusual trading patterns of securities. Temporarily prohibiting the net settlement on a certain securities with unusual trading will be considered in cases that securities have unusual or extreme changes in price and/or volume.
Ms.Patareeya said that: "From reviewing today's market trading conditions, the SET still does not consider it necessary to bar the net settlement on any securities. However, the SET's trading surveillance team will continue to closely monitor the securities trading."
