• Thai SEC proposed revision of regulations for securities trading services and short selling securities when securities companies do not yet have the securities in their possession.
• Addresses increasing volume of foreign investor trading through Thai securities firms, ensuring these firms can effectively monitor compliance with regulations.

Key Revisions

• Securities companies must understand their clients’ operational systems to ensure compliance with relevant regulations and communicate these requirements to clients.
• Also must implement effective systems to monitor and review client trading activities.
• Securities companies must have agreements with clients specifying that clients will bear any fines resulting from their non-compliance with short selling regulations.
• Also must maintain systems capable of processing client orders according to stock exchange criteria and distinguishing between short selling and long sale transactions.
• Before placing sell orders, firms must verify that clients have borrowed securities or possess them completely; must track, review client trading activities post-transaction, with systems in place to detect potentially inappropriate short selling and long sale transactions.

Effectiveness

• The consultation is open until 31 October 2024.