Stock news 16:14 hours 2024-02-27
Mr. Rongrak Panapawutthikul, Deputy Manager, Head of Legal Department. Mr and the head of the corporate secretarial and organizational supervision group as a spokesman The Stock Exchange of Thailand (SET) revealed after the board of directors of the Stock Exchange of Thailand Decided to approve the principle of “Measures to improve confidence in short selling and trading programs, including measures to increase disclosure of information to the public” the SET is preparing to announce additional new measures, divided into 3 main issues: 1. Measures regarding the reduction of false volatility. Normal price of securities 2. Measures for regulating inappropriate trading behavior and 3. Measures for increasing investor protection.
There will be some measures that can be quickly enforced, namely the adjustment of stock qualifications. or increase the size of the minimum securities market capitalization from 5,000 million baht to 7,500 million baht, increase the requirements for considering the liquidity of stocks. It is noted that the stocks must have a monthly trading volume ratio of more than 2% compared to the volume of the listed stocks (monthly turnover), which is considered the standard of the Stock Exchange. It is expected that clarity will be seen within the 2nd quarter of 2024.
The parts that need time to develop the system include providing a central platform to check the availability of securities before selling them short to serve as a central information source for member companies and the Stock Exchange. Check investors before sending trading orders, add a Circuit Breaker for each stock at +/- 10% of the latest trading price. Also known as a Dynamic price band to prevent prices from fluctuating too quickly. and measures regarding the supervision of inappropriate trading behavior In the matter of adding Auto stop to individual stocks, etc., it is expected that clarity will be seen within the second half of this year.
“Some measures we may be able to take immediately. But some measures require the development and improvement of the system. To support this May take time. If we can, we want to do it as soon as possible with all measures. But each measure has different methods and steps, such as what is only a correction of the criteria. such as modifying the properties of shares or in the case of fines Only amending the stock market criteria for a Hearing No modifications to the system are required. This can be done quickly. But if it is necessary to review the criteria and adjust the system The readiness of the members must be seen This may take time to process,” said Mr. Rongrak.
In addition, the SET has added measures to reduce abnormal fluctuations in stock prices by adding auction trading measures for stocks subject to trading supervision measures. From now on it can be traded with automatic matching. The operating method is to open trading pairs 3 times a day (Pre-Open1, Pre-Open, and Pre-Close) with random pairing times like normal stocks, while Interval 1 and Interval 2 are not open for sending orders, but All Update / Cancel order Expect to see clarity in the second half of this year.
Mr Rongrak further stated that the UDG is still preparing to negotiate with the SEC Office on the amendment of the Securities Act. To pave the way for penalties to be given to investors who do Bare Short Selling, as currently the Stock Exchange only has the power to penalize member companies. that it cannot be punished for the individual, so the criminal may not fear However, in order to be able to move forward, the securities law must first be amended.
With regard to the timetable for the publication of regulations by the UDG, it is after the principles have been presented to the board of the UDG for consideration and approval. There will be a consultation with those involved. (Stakeholders) and prepare draft rules for hearing opinions (Hearing) before seeking approval from the Securities and Exchange Commission (SEC) After receiving approval. So it can be announced that it is further enforced.
By InfoQuest News Agency (27 February 2024)
Tags: SET , Stock Exchange , Rongrak Panapawutthikul
#SET #explains #tough #measures #short #selling #expected #enforced #Q267 #adjust #auction #trading #Circuit #Breaker #increase #heavy #penalties #control #hot #stocks #InfoQuest
