Thailand exchange resets short-selling rules from 16 November
The Stock Exchange of Thailand will introduce eight trading measures on 16 November. The package changes short-selling prices, reduces minimum price increments for some shares and charges accounts that submit unusually many orders with few completed trades. It also removes several existing restrictions. The exchange says the reforms aim to balance liquidity with stability after a consultation and regulatory approval.
Economics & Markets··Midday
Eight measures take effect after regulatory approval
The Stock Exchange of Thailand, which runs the country’s securities market, announced eight revised trading measures for 16 November. The package has received securities-regulator approval following consultation with investors and other stakeholders in May. It changes short selling, price increments and the handling of automated orders.[1], [2]
The exchange says its objective is to balance liquidity and market stability while reducing trading costs. Shares priced between 5 and 50 baht receive smaller minimum price increments, allowing orders to be placed at more closely spaced prices.[1]
Short sales face a tighter price rule after sharp falls
Under normal conditions, a short sale can be priced at the latest transaction price or above it. After a sufficiently steep closing-price decline, the following trading day requires a price above the latest trade. Short selling is confined to highly liquid instruments, including SET100 shares, underlying securities for single-stock futures, depositary receipts and exchange-traded funds.[1]
Heavy order traffic brings a charge as other limits are removed
Accounts with an order-to-trade ratio above 50 and an average submission rate exceeding 50 orders per minute face an additional fee. It applies to orders beyond 15,000 a day at 0.15 baht each. Registration assessments for automated and high-frequency trading consider speed, frequency, daily trading value and positions held at the end of the day.[1]
The package also abolishes individual-security dynamic price bands, restrictions on which securities high-frequency traders can trade and minimum order resting times. Products tied to foreign assets begin trading two hours earlier, with their closing times unchanged.[1]
