On 22 December 2020, Thai SET issued guidelines on reporting short positions.
- Thai SET issued guideline for short selling reporting for positions which have not been covered, with an example of the calculation amount and adjustment of such short positions.
- All member companies and non-member securities companies have a duty to submit report on short positions which have not yet been covered at the end of the day.
- However, some companies have reported to SET that volume of short positions which not yet covered (outstanding short positions) may amount higher than the real figure.
- As they could not track down the buy-back status of clients’ short sale transactions.
- SET has consulted with members, and found out that most clients usually buy back securities within 45-60 days from the day the short sale transaction is placed.
- If securities companies are not able to track down buy-back status, they shall adjust short positions which have not yet been covered at the due date of 60 days after order.
- This will be effective from 4 January 2021 onwards.