Thailand Stock Exchange Updates Trading and Short-Selling Rules

Thailand's stock exchange will launch new rules starting November 16 to improve market stability, liquidity, and investor confidence. The changes focus heavily on short-selling practices and high-frequency trading.

New Trading Rules

The Stock Exchange of Thailand will let stocks priced between 5 baht and 50 baht trade in smaller steps to lower trading costs. Short selling will now be limited only to more liquid securities, such as SET100 shares, single-stock futures, depositary receipts, and exchange-traded funds. Investors can only short-sell a security at a value equal to or higher than its latest traded price. Extra fees will apply to accounts that send many orders but complete very few trades. The exchange is also removing dynamic price bands and minimum resting-time rules, while cutting restrictions on high-frequency traders.

Morning Hours

Trading hours will extend in the morning for derivative warrants and ETFs linked to foreign securities from November 16. These will start at 8 a.m., which is two hours earlier than the current schedule, though closing times will stay the same.

Context

Stock exchanges frequently adjust their trading rules and fee structures to balance market activity and protect everyday investors from sudden price swings. These approvals came from Thailand's Securities and Exchange Commission following a public consultation process.