Bangkok, June 2 – SET reveals that 80% of PT / HFT investors in Thailand are in the SET 100, highlighting the criteria that must be registered before trading. Managing investment risks Market Overview
Corporate Strategy Department The Stock Exchange of Thailand (SET) published a research article titled “PROGRAMME & HIGH FREQUENCY TRADING AND REGIONAL SET REGULATION GUIDELINES” via SET NOTE stating that the automatic sends trading orders by processing and making trading decisions with the program or program trading (PT) is very popular among institutional investors around the world. because it improves the efficiency of sending trading orders by group investors High frequency trading (HFT) is a type of program trading investor that uses quick strategies. And do not like to hold securities for a long time, with HFT accounting for about 50% of the turnover on the US stock market and about 24-43% of the turnover on the European stock market in 2020 and 9% of the turnover. on the Thai stock market in 2022.
From the behavior of the HFT program in the Thai stock market in 2022, it was found that 80% of all trading turnover. Concentrated only in large securities (SET100 group) and 96% of the total securities in the SET100 have HFT participating in only 15% of the trading value of each security. In terms of small and medium-sized securities (groups outside the SET100), almost all of them were found to have less than 10% of HFT involved in trading.
Major stock exchanges in the region Both stock exchanges focus on institutional investors such as the Hong Kong Stock Exchange, Singapore and those that focus on the individual investor base. (The share of individual investors is 35-80% in each market) such as the stock market of Korea, Taiwan, Malaysia, Indonesia, treat PT / HFT group investors as general investors. All securities are tradable and there is no additional fee for being an investor of this type. Including not using any system to slow down the speed at which orders are sent
However, in order to tighten the supervision and control of the risk of order execution with trading programs. Most exchanges in the region, including Thailand, require PT/HFT registration first. therefore able to send trading orders Help to tighten the supervision and control of risks. Including guidelines for risk management that securities companies must comply with. for detecting trading orders that may be sent incorrectly accidentally lost or improperly prevent the delivery of orders that could affect the general market.-Thai News Agency