• Thai SET proposed to revise regulations re: short selling, high-frequency trading (HFT).
• Follows Thai SET June 2024 revised regulations to enhance supervision.

Background

• Following the implementation of the revised regulations on short selling, HFT  the uptick rule has not had a positive effect on the change in the price of securities which could be shorted; share prices have continued to decline.
• Thai SET sought feedback from relevant parties on adjustment of the related criteria.

Proposed Amendments

• The uptick rule applies for each security on the next business day when any security's closing price falls by 10%/more compared to its previous business day's closing price.
• Only large, highly liquid securities may be shorted and traded by HFT investors; ban short selling of non-SET100 stocks with market cap of more than/equal to THB7.5bn.
• Cancel the minimum resting time (MRT) requirement for trading orders to remain in the trading system; other related regulations remain unchanged.

Effectiveness

• Consultation closes on 31 March 2025.