SEC and SET Collaborate to Enhance Market Confidence

The SEC and SET discussed reviewing rules for collateral in cash accounts, securities settlement cycle, and purchasing securities to ensure fair treatment for investors. They will propose changes to the SEC Board for approval. They also discussed reviewing guidelines for short selling transactions.

The Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) recently held a joint meeting to discuss ways to enhance market confidence. They discussed reviewing rules related to securities trading in cash accounts, collateral placement, securities settlement cycles, and purchasing securities through cash balance accounts in case of abnormal trading activity.

The aim is to ensure fair treatment among different types of investors and maintain stability and efficiency in securities trading. The SET will expedite the review process and propose changes to the SEC Board for consideration. They also discussed reviewing guidelines for securities firms regarding clients’ short selling transactions to ensure adherence to international standards and prevent inappropriate actions.

The SEC and the SET held discussions about the potential review of the guidelines for securities firms issued by the Association of Securities Companies (ASCO) regarding clients’ short selling transactions. It was agreed upon by the SET that this review should be conducted in line with current contexts, aiming to ensure clarity and instill more confidence in securities firms’ adherence to international standard guidelines. The objective is to effectively prevent any inappropriate actions.

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Source : SEC and SET discuss expediting regulatory review to enhance market confidence