# SEC public hearing on securities trading services including short and long selling transactions

- Link: https://www.thailand-business-news.com/markets/167187-sec-public-hearing-on-securities-trading-services-including-short-and-long-selling-transactions
- Published: 2024-10-08T04:51:00+07:00
- Author: SiamNews PR

**SEC is seeking public comments on proposed amendments to regulations regarding
securities trading services. The proposed changes aim to enhance oversight and ensure
compliance with regulations for foreign investors trading through Thai securities
companies.**

---

The Securities and Exchange Commission (SEC) is seeking public comments on proposed
principles and draft amendments to the regulations related to provision of securities
trading services and the sale of securities where the securities company does not
possess the securities. The proposed amendments aim to enhance the oversight of 
securities trading services, maintain fair practices and clarify service provision
of securities companies.

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Currently, a significant volume of securities trading on the Stock Exchange of Thailand(
SET) involves foreign investors, with most orders executed through foreign securities
companies to Thai securities companies. In receiving these orders, Thai securities
companies may not have complete information on the clients of the foreign securities
companies and their trading behaviors. Therefore, it is essential to establish regulations
ensuring that Thai securities companies, under the supervision of the SEC, implement
stringent processes and systems for screening and monitoring. This will ensure that
foreign securities companies, as clients of Thai securities companies, comply appropriately
with the regulations related to short selling and long selling transactions*.

The Capital Market Supervisory Board has approved in principle the proposed amendments
to the regulations related to the provision of securities trading services and the
sale of securities where the securities company does not have the securities in 
its possession. The SEC is therefore conducting this public hearing to gather feedback
from stakeholders. The key points of the proposed amendments are as follows:   

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(1) To require securities companies with clients who are securities companies under
foreign law and acting as brokers or agents in trading or exchange of securities
for others (inter-brokers) to additionally conduct a Know-Your-Process (KYP) due
diligence. This is to ensure that clients who are foreign securities companies acknowledge
and understand the relevant regulations and effectively communicate these regulations
to their own clients. It also aims to ensure that the clients have work systems 
in place to control and monitor compliance with the relevant regulations;   (2) 
To require that securities companies put in place efficient work systems for monitoring
and inspecting securities trading transactions of clients; 

(3) To require that securities companies enter into an agreement with their clients
before commencing service provision, ensuring that the clients agree to pay a fine
if the securities companies are penalized by the SET or the clearing house due to
the clients’ failure to comply with regulations related to short selling transactions.
The securities companies would also have the duty to ensure compliance with the 
agreement;

**Source** : [SEC public hearing on proposed amendments to the regulations related to securities trading services including short and long selling transactions](https://www.sec.or.th/EN/Pages/News_Detail.aspx?SECID=11204&rand=113627)