The Stock Exchange of Thailand (SET) and the Thailand Futures Exchange (TFEX) plan to implement a new trading system from May 8, in line with international best practices and global trends.
The bourses have collaborated with Nasdaq to develop the new trading system using the latest technology and innovations to accommodate the increasing number of transactions and support global investments, according to the SET's announcement on its website.
The SET and TFEX changed their market data systems and market surveillance systems by applying new technology, said the bourses.
The system can disseminate trading data to member systems and other data providers that align with international standards and enhance surveillance tools in detecting and analysing abnormal trading efficiently, according to the SET.
The new trading system implements the international ITCH/OUCH protocol and FIX standard protocol used in most exchanges in order to increase opportunities for foreign investors to access the Thai market.
The new system also increases the dissemination of bid/offer price depth of securities in the SET and the Market for Alternative Investment from five price levels to 10 levels, providing investors with more in-depth data.
"The flexible and standard structure of the new trading system will allow the SET and TFEX to provide more diverse global products with shorter implementation time," said the statement.
The system also provides new functions for members such as self-match prevention to prevent wash trades from the same client and pre-trade risk management as broker alternatives.
To accommodate the new trading system, the SET and TFEX have coordinated with related stakeholders since early 2021 such as members' trading system developers, data dissemination system developers, Thailand Clearing House Co Ltd and Thailand Securities Depository Co Ltd.
"All systems were continuously tested since May 2022 to ensure the relevant systems and functions can work correctly and smoothly," said the announcement, adding the new data dissemination and market surveillance systems would be launched by the second quarter.
The SET and TFEX also revised trading regulations to suit the current business environment, better align with international practices and accommodate the new trading system.
For example, calculation functions for opening and closing prices as well as ceiling and floor prices of foreign securities were amended to be consistent with the algorithm of the new system.
Good-Til-Cancelled (GTC) and Good-Til-Date (GTD) orders will be implemented along with the new "suspend trading" sign, according to the statment. It will also cancel odd lot trading of derivative warrants.
TFEX also amended the functions of opening prices as well as the validity period of GTC and GTD orders to be consistent with the algorithm of the new system. The circuit breaker regulation was changed by shortening the suspension period, the announcement said.
