Bangkok, Stock Exchange of Thailand Board of Directors Consider the results of studies on program trading and short selling.
The Stock Exchange revealed that today (Feb. 12) a leading international consulting company made a presentation to the Stock Exchange’s board of directors. To the conclusion of the study on the comparison of regulations and practices regarding short selling and the use of computers to send orders (program trading) used in the stock exchange. By comparing with stock exchanges abroad. Both in developed markets and markets with similar development to Thailand (peer exchanges) to enhance trading on the stock exchange. To be transparent and to strengthen fairness for all types of investors
From the results of the consultant’s study, it was found that Overall, the Thai Stock Exchange already has regulations and guidelines used to supervise short selling and program trading that are comparable to peer exchanges. However, the Advisor has additional suggestions for the Stock Exchange to consi
der in order to be a measure. To strengthen the supervision of such matters to suit the current situation in the country.
which initially Stock Exchange There will be action in 4 areas as follows:
1. Control: Increasing the mechanism for controlling program trading and reducing the volatility of securities prices. Both overall and in the case of short selling, such as setting guidelines for following up on short selling transactions or having a price control mechanism to reduce the volatility of securities prices.
2. Reports: Improving short selling reports to make it easier to understand details and follow up. including disclosure to the public
3. Monitoring and Enforcement: by emphasizing expectations on member companies to ensure investor compliance. Including adjusting the punishment to be stricter.
4. Division of Responsibilities (Responsibility): There will be a presentation specifying the scope of duties and responsibilities of the regulatory agency and the Stock Exchange. To take care of short se
lling and program trading in accordance with international standards So that regulatory agencies can punish wrongdoers directly and quickly.
The results of the four operations will be able to provide better protection against naked short selling transactions and inappropriate program trading transactions.
In this regard, the Stock Exchange of Thailand Board have considered and agreed that the Stock Exchange should Take the recommendations of the said consultant into consideration for improving related rules and guidelines. As well as bringing matters to be improved to discuss with the Securities and Exchange Commission (SEC) and related parties. In order to expedite action on this matter as quickly as possible.
Source: Thai News Agency