The Stock Exchange of Thailand (SET) will enforce new, stricter regulations on short selling and program trading beginning July 1, 2024. This initiative aims to enhance market stability and boost investor confidence by imposing higher qualifications for short-selling stocks and requiring mandatory registration for High-Frequency Trading (HFT) investors.
Under the new regulations, only stocks with higher liquidity and substantial market capitalization will be eligible for short selling. Additionally, the SET will begin disclosing information about investors who exhibit improper trading behavior to member companies. These measures are designed to provide better oversight and foster a more secure and transparent trading environment.
Key elements of the new regulations include:
Enhanced qualifications for short-selling stocks, focusing on larger and more liquid stocks.
Mandatory registration for HFT investors to improve regulation and oversight.
Disclosure of information regarding improper trading behavior to all member companies to ensure effective monitoring.