Stock Exchange of Thailand Bolsters Trading Supervision

In a proactive move to enhance market integrity, the Stock Exchange of Thailand (SET) is undertaking significant steps to improve oversight on trading activities, particularly focusing on 'short selling' and 'program trading'. These types of trades have been under the global regulatory spotlight, and Thailand is aligning its oversight with international standards.

Expert Analysis Validates Thai Market Regulation

A prominent international financial consultancy firm has conducted a case study revealing that Thailand's existing regulations and practices for short selling and program trading are on par with other global exchanges. This benchmarking is crucial as it shows Thailand's commitment to maintaining a robust regulatory framework for its capital markets.

SET's Decisive Actions for Enhanced Oversight

Pakorn Peetathawatchai, the President of the SET, has endorsed the case study's outcomes and outlined a series of initiatives aimed at refining the oversight mechanisms. These measures are designed to be well-suited to the specificities of Thailand's market context.

One of the core objectives of the SET will be to install additional controls that mitigate the influence of short selling and program trading on market prices and liquidity. Another priority is to increase transparency; to achieve this, the SET plans to release more comprehensive public reports on these trading activities to assist investor decision-making.

On the enforcement front, the SET, in collaboration with its member brokers, is set to develop robust processes for data verification. The organization will also instigate procedures to impede and penalize irregular trades, including actions against perpetrators and their partners.

A crucial aspect of these new measures will be the coordination between the SET and other regulatory entities to streamline regulations and delineate responsibilities clearly. This coordination is intended to enable more efficient and forceful oversight, as well as facilitate harsher punishments for any unlawful activities.

The SET is committed to communicating the specifics of these enhanced oversight initiatives to the public immediately following discussions with regulatory bodies. This transparency seeks to reinforce investor confidence in the Thai capital market.

regulation, oversight, transparency