Recently, a leading international financial consultancy firm presented a case study indicating that the regulatory framework and practices governing ‘short selling’ and ‘program trading’ in the Thai stock market are comparable to those of peer exchanges.
Pakorn Peetathawatchai, President of the Stock Exchange of Thailand (SET), acknowledged the findings and proposed several measures to strengthen oversight in these areas, ensuring they are appropriate for the country’s situation.
He mentioned that the SET would implement additional mechanisms to control the impact on prices and liquidity from short selling and program trading transactions. Regarding transparency, the SET will provide more detailed public reports on short selling and program trading to aid investors in their decision-making process. Additionally, for monitoring and enforcement, the SET and its member brokers will establish processes and systems for data verification and implement measures to prevent irregular transactions, and pursue penalties for violators and their accomplices, ensuring clarity and fairness.
Moreover, the SET will propose that all relevant parties involved in oversight collaboratively adjust various regulations and clearly define the responsibilities of each regulatory body and the SET itself. This aims to facilitate more convenient, swift, and stringent checks and penalties for offenders and their accomplices.
Details of these measures will be disclosed to the public as soon as possible after consultation with the regulatory agencies. (NNT)
