The Stock Exchange of Thailand (SET) is preparing to revise trading criteria to suit current business conditions, to help facilitate investors and make them more consistent with international practice, the Thai bourse said recently.
To support the trading system using world-class technology to increase the market trading efficiency in the first quarter of 2023, the SET is in the process of conducting a public hearing from relevant parties until Sept 16.
According to the SET's statement, the threshold of opening and closing prices (equilibrium price) will be adjusted in accordance with the practice of foreign exchanges by specifying that the opening and closing prices may be outside the highest price (ceiling) and the lowest price (floor) ±1 price range. The former is set to be within the range not exceeding the ceiling and floor.
Also, ceiling and floor criteria of securities held by foreigners (Securities -F) for trading by a trading report (trade report) will be changed to having a single parameter of ±60% of the reference price so that the ceiling and floor are equal in all trading methods from the original trading with a large trade report method.
For example, the number of securities from one million units or more or the turnover of 3 million baht or more will have a ceiling and floor value of ±30% of the reference price.
Sub-units of derivatives warrant (DW) can be traded to help reduce the burden and operating costs of member companies. Due to the current trading value of DW that is a sub-unit, also known as an "odd lot", which is trading under 100 units, is very small.
Besides, there will be improvements in order types, including cancellation of special market orders, adding long orders, improving iceberg orders, and improving order combinations and order period.
Lastly, the new rules will allow the SET to cancel buy/sell orders in the event of a system failure. This can be done in case of emergency or to prevent damage to the overall trading which is in accordance with the guidelines as foreign exchange markets.
In this regard, the SET is open to opinions from relevant parties in order to obtain useful information for consideration to improve the rules and has published a public hearing document with details on the SET website at https://www.set.or.th/th/rules-regulations/market-consultation under the topic improve trading criteria to support the new trading system.
Interested parties can send their opinions to the SecuritiesTradingDepartment@set.or.th until Sept 16.
