Thai Bourse Raises Priority Of ATO And ATC Order-Matching

The Stock Exchange of Thailand (SET) will have at-the-open (ATO) and at-the-close (ATC) orders as its first order-matching priority, ahead of limited-price orders. This is in response to investors’ preference to trade securities at either opening or closing prices. Re-prioritizing order-matching will not affect these prices, but, on the contrary, will minimize fluctuations.

“The change has been introduced to both boost trading efficiency and better respond to investors’ needs”, SET Executive Vice President Mr. Suthichai Chitvanich stated. The move will reduce the current price fluctuation caused by orders specifying values which are unusually high or low.

“Raising ATO and ATC orders to the first priority of order-matching will benefit investors as they will be free to trade securities at their discretion. Additionally, their orders will be matched at levels closer to their preferred opening or closing price”, Mr. Suthichai said.

If all ATO/ATC orders cannot be matched, the unfilled orders will be automatically cancelled. Meanwhile, if these orders were the limit price type, the remaining orders will remain and be matched after the market opens.

Therefore, investors are encouraged to fully examine the new arrangement before it takes effect on July 3, 2006. Inquiries can be made by investors to their brokers’ marketing representatives, or they may contact the SET Call Center on 0 2229 2222.

Raising the priority of ATO/ATC orders will not affect the calculation of opening or closing prices. And, alternatively, ATO and ATC orders may be made on-line, just like any other internet trade, provided the screening system is in place to prevent inappropriate orders being transmitted.