# SET to tighten regulations on short selling and program trading starting from July 1, 2024

- Link: https://www.thailand-business-news.com/investment/147636-set-to-tighten-regulations-on-short-selling-and-program-trading-starting-from-july-1-2024
- Published: 2024-06-25T06:52:00+07:00
- Author: SET News

The Stock Exchange is set to enhance measures regulating short selling, as well 
as the continuous trading program, which will detail the characteristics of stocks
eligible for short selling.

## Key Takeaways

 * The Stock Exchange of Thailand is implementing stricter regulations on short 
   selling, including higher qualifications for eligible stocks and mandatory registration
   for High-Frequency Trading investors.
 * The new measures aim to bolster trading oversight, boost investor confidence,
   and disclose information about investors exhibiting improper trading behavior.
 * These regulations will be effective from July 1, 2024, and detailed information
   can be found on the Stock Exchange’s website.
 * The initiative will include the registration of investors placing orders through
   High-Frequency Trading (HFT) and the disclosure of information regarding investors
   who exhibit improper trading behavior. These measures aim to bolster trading 
   oversight and boost investor confidence, with implementation commencing from 
   July 1, 2024.

## Measures to supervise short selling

Enhancements to the qualifications for short-selling stocks in the non-SET100 group
have been made. Now, only stocks that are larger and possess higher liquidity are
eligible. These stocks must maintain an average market capitalization of no less
than 7,500 million baht over three months and an average monthly turnover of at 
least 2% over the past year.

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Additionally, there must be a minimum of 20 percent free float of shares held by
small common shareholders. The Stock Exchange of Thailand will announce the updated
list of securities eligible for short selling under these new criteria on their 
website.

## Measures to supervise trading programs

Mandatory registration for investors engaging in High Frequency Trading (HFT) is
required before they commence trading, to improve oversight of this investor group
and ensure stricter regulation.

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## Disclosing information about investors who have inappropriate trading behavior

The Stock Exchange will disclose information on investors exhibiting inappropriate
trading order behavior to all member companies. This measure will enable member 
companies to monitor such investors more effectively, and it is set to be implemented
starting July 1, 2024.

Investors and interested parties can view details of the revised criteria at Stock
Exchange website [www.set.or.th](http://www.set.or.th/) under the headings “Rules/
Supervision” and “Rules – Circular regarding Members”