Bangkok: The SET explains measures to improve confidence in short selling and program trading, including measures to increase information disclosure to the public. International Foreign investors understand and expect to use AUCTION to stem hot stocks starting in the second half of this year.
Mr. Phakorn Peetathawatchai, Director and Manager Stock Exchange Said that measures to regulate and build confidence in the capital market The Stock Exchange tries to use it. International Because it is already used in foreign stock markets. I believe that foreign investors have understanding. and will be able to help build confidence among investors. Especially in the case of the Stock Exchange of Thailand’s board of directors Agree on the principle of ‘Measures to improve confidence in short selling and program trading, including measures to increase information disclosure to the public. Focused on 3 areas consisting of
1. Measures to reduce abnormal fluctuations in securities prices
2. Measures regarding supervisio
n of inappropriate trading behavior
3. Measures to increase investor protection
‘Some measures can be put into practice by the Stock Exchange of Thailand. But some measures are related to many parties. Therefore it is necessary to take time. Investors are asked to understand that the measures taken are not a single pill that can cure all diseases. Many measures must be added continuously according to the situation,’ Mr. Phakorn said.
Mr. Rongrak Panapawutthikul, Deputy Manager, Head of Legal Department and head of the corporate secretarial and organizational supervision group As a spokesperson for the Stock Exchange, he said that the work of the Stock Exchange and the Office The SEC has always been close and coordinated with each other. and is consistent in one direction which in terms of adjusting the rules to control abnormal stock trading There are many parts to the operation. Especially stocks that have risen sharply. The Stock Exchange will introduce the Call Auction system, which is expected to begin
operations in the second half of this year. From the past, the Stock Exchange There are 3 levels of measures to control hot stocks. Currently, some stocks are experiencing more heat.
As for the Auction system, it is the same system that allows trading stocks in the Live Platform to be traded. It will be open for trading 3 times a day, namely in the morning at 9:55 a.m., at noon at 2:25 p.m., and in the evening at 4:35 p.m. The Stock Exchange is in the process of considering whether the use of Auctions in trading should determine when to use them. Will have to wait for the stock control measures to be hot T1 – T3 before using Auction or will use this measure in conjunction with normal measures.
Using Auction is one way to improve operations. In order to raise confidence in Short Selling and Program Trading, including measures to increase information disclosure to the public, we will begin gradually listening to the opinions of stakeholders. and started using it from the 2nd quarter and the second half of t
his year.
Measures in Part 1: Measures regarding Reducing abnormal fluctuations in security prices Divided into a review of securities that can be short sold to have a market capitalization of 7,500 million baht and a free float of not less than 20%. Add measures to control the impact of short selling only in cases where the stock price of each security drops by more than 10%. % from the previous day’s closing price By specifying that the short sale price must be higher than the latest price (Uptick Rule) in order to reduce price fluctuations.
Including protection against abnormal fluctuations in stock prices, including adding a Circuit Breaker to increase or decrease stock prices by 10% by using a Dynamic Price band to prevent stock prices from fluctuating too quickly. and adding Auction measures to control trading
Part 2: Measures regarding supervision of inappropriate trading behavior Including adding an Auto Halt system for each stock in cases where there are total shares in the order. According to
the specified conditions, including disclosing customer information that sends inappropriate orders to all member companies. and registration Users of High-Speed ??Trading Programs, or HFT, to be able to track their trades more conveniently.
Part 3 Measures to increase investor protection By increasing transparency to investors Both the disclosure of the Short Sell transaction information report on each security on a daily basis has increased the penalty and fine three times higher than before.
In the next step, the Stock Exchange Will arrange to listen to opinions (Hearing) from those involved. It will also be discussed with the Securities and Exchange Commission (SEC) closely before being presented to the SEC for approval. which is in accordance with the prescribed legal procedures
Source: Thai News Agency