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Thailand exchanges are adopting a new set of trading rules to make them on par with international standards ahead of the launch of a new trading system in the first quarter of 2023. The new securities trading rules will make trading convenient and increase investment opportunities, according to the Stock Exchange of Thailand (SET) President Pakorn Peetathawatchai.
The new rules would be accommodative of the new trading system and the changes would be regulated and modified according to the current business model and need, added the SET President. According to the SET, the new trading system, along with the tweaks to the regulations, will come into effect around the same time somewhere in the next two months.
Thailand exchange’s overhauled rules
Currently, the opening and closing prices (equilibrium price) were set within the ceiling and floor for a day, meaning the equilibrium price would not cross the threshold of the upper (ceiling) or lower (floor) limit of the exchange. The revamped rules would ensure the equilibrium price is not limited to the ceiling and floor, and it can trade above or below by one tick.
The SP (suspension) sign would be replaced by a P (pause) sign, which would be used in case of regulatory measures implemented for securities whose trading conditions depart from typical market conditions.
Thailand exchanges will also introduce ‘Overnight Orders’. Investors will be able to place orders under good till cancel (GTC) or good till date (GTD), which if unmatched, will remain in the trading systems till cancelled voluntarily or till the date specified, respectively. The trading system will not keep any orders past 30 days.
For all trading methods, the foreign share ceiling and floor will be lifted to 60% of the reference price. Furthermore, the trading of derivative warrants (DW), also known as an ‘odd lot’, trading under 100 units has been cancelled by the SET. The President has indicated that the current DW trading volume is too little.
In case of an emergency or a system disturbance that can cause damage to investors and the trading system, the stock exchanges will be allowed to cancel trading orders under the new regime.
