SET amends short selling and program trading regulations, commencing on July 1, 2024
The Stock Exchange of Thailand (SET) announces additional regulatory amendments on short selling and program trading to reinforce market supervision and to boost investor confidence.
The revised regulations comprise the qualifications of securities eligible for short selling,
the pricing mechanism for short selling transactions, the registration of high frequency trading (HFT) investors,
and information disclosure regarding investors involved in inappropriate trading practices. The supervisory measures will be implement on July 1, 2024.
Regulatory measures on short selling
1) The qualifications for the non-SET100 securities eligible for short selling have been amend to require larger market-cap shares with more trading liquidity. Under the new regulation,
the minimum three-month average market capitalization requirement for the non-SET100 securities will be rais to 7.50 billion baht(approx. USD 204.03 million). Additionally,
12-month average monthly turnover of at least 2 percent will be introduce
while the minimum free float of 20 percent of paid-up capital will remain unchanged.
The list of shares eligible for short selling under the new regulation will be publishe on the SET website.
2) The uptick rule, which requires short selling at prices higher than the last executed price, will replace the current zero-plus tick rule, which allows short selling at prices equal to or higher than the last executed price.
Regulatory measures on program trading
3) HFT investors will be require to register before sending HFT* orders to strengthen the oversight of this group of investors.
Disclosure of investors who conduct inappropriate trading practices
4)SET will disclose information of investors who conduct inappropriate trading practices to all SET broker member companies, enabling more effective supervision.
The aforemention regulatory measures will be implemented on July 1, 2024.
The Stock Exchange of Thailand
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