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SET to Overhaul Rules for Enhanced Market Confidence

SET to Overhaul Rules for Enhanced Market Confidence

Prachachat•Economy•16d ago

Reader Briefing

The Stock Exchange of Thailand is soliciting public opinion on proposed rule changes aimed at boosting market confidence and efficiency.

  • •The Stock Exchange of Thailand is proposing significant rule adjustments to enhance investor confidence.
  • •Key changes include refining tick sizes, introducing extra charges for high-order accounts, and modifying short-selling rules.
  • •The public consultation period for these proposed measures runs from May 13-29, 2026.

Overview

  • •The Stock Exchange of Thailand is conducting a public consultation period from May 13-29, 2026, in order to gather feedback on proposed market confidence enhancement measures.
  • •The Stock Exchange of Thailand announced the review of trading supervision measures to effectively enhance capital market confidence, aligning with its strategic plan.
  • •The Stock Exchange of Thailand is opening feedback on 'Improvements to Confidence Enhancement Measures' based on market strategy to create opportunities and increase liquidity.
  • •The Stock Exchange of Thailand aims to reduce the bid-ask spread and commission costs for investors by narrowing tick sizes for securities priced between 5-50 baht.
  • •An extra charge will be applied to accounts with a high order-to-trade ratio (OTR) and high trading frequency, in order to reflect true transaction costs and reduce system burden.
  • •The Uptick Rule for short selling will be adjusted; a 10% price drop from the previous day's close will trigger it as a per-security rule on the next trading day, to slow selling pressure during volatility.
  • •High-Frequency Traders (HFT) will be registered and regulated based on post-trade behavior, such as order frequency, end-of-day status, and daily transaction value, in order to ensure appropriate oversight.
  • •Dynamic Price Bands (DPB) will be abolished on a per-security basis to reduce trading obstacles, especially for less liquid stocks.

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Key Entities

Organization

The Stock Exchange of Thailand(ตลาดหลักทรัพย์ฯ)ℹ️
The organization initiating a public consultation on new trading rules to enhance market confidence.
SETℹ️
Abbreviation for The Stock Exchange of Thailand, referring to the market and its confidence.

Law

High-Frequency Trader(HFT)ℹ️
A term referring to traders using high-speed trading strategies whose registration and regulation are being reviewed.
SET100 Index Stocks(SET100)
A category of stocks in the Thai market that will be permitted for short selling under the revised rules.
Exchange-Traded Fund(ETF)ℹ️
A financial instrument that will be permitted for short selling, with its underlying assets also subject to specific rules.
Depositary Receipt(DR)ℹ️
A type of security that will be permitted for short selling under the proposed rule changes.
Single Stock Futuresℹ️
Futures contracts based on single stocks, whose underlying assets will be permitted for short selling.
Derivative Warrant(DW)ℹ️
A financial instrument whose underlying assets will be prohibited for short selling under the revised regulations.