# SET to Improve short selling and program trading Supervision

- Link: https://www.thailand-business-news.com/set/126537-set-to-improve-short-selling-and-program-trading-supervision
- Published: 2024-02-15T16:41:48+07:00
- Author: SET News

The Stock Exchange of Thailand (SET) has received a case study from an international
financial consultancy firm, which found that the regulatory framework for ‘short
selling’ and ‘program trading’ in the Thai stock market is comparable to peer exchanges.

 * The Stock Exchange of Thailand (SET) is planning to enhance oversight of short
   selling and program trading to minimize their impact on market prices and liquidity.
 * The SET will provide more detailed public reports on short selling and program
   trading to assist investors in making informed decisions.
 * Collaboration with regulatory agencies will lead to adjustments in regulations
   and clearer definition of responsibilities for more effective oversight and swift
   penalties for offenders.

In response, SET’s President, Pakorn Peetathawatchai, has proposed measures to strengthen
oversight in these areas, including implementing additional mechanisms to control
the impact on prices and liquidity, providing more detailed public reports on short
selling and program trading, establishing processes for data verification, and pursuing
penalties for violators. SET also plans to collaborate with regulatory agencies 
to adjust regulations and define responsibilities more clearly. The details of these
measures will be disclosed to the public after consultation with the regulatory 
agencies.

ADVERTISEMENT

To ensure fair and transparent trading practices, the SET has implemented various
rules and regulations. However, in recent years, there have been concerns about 
potential market manipulation and insider trading, prompting the SET to enhance 
its trading oversight capabilities.

**SET Enhances Trading Oversight:** In response to these concerns, the SET has implemented
several measures to strengthen its trading oversight:

### Related**Posts**

###  󠀁[Thai Listed Companies Face Nearly $11 Billion in Annual Climate‑Risk Costs by 2050, S&P Global Warns](https://www.thailand-business-news.com/environment/329326-thai-listed-companies-face-nearly-11-billion-in-annual-climate-risk-costs-by-2050-sp-global-warns)󠁿

###  󠀁[Offering incentives for companies on the Green List with the IDX Green Equity designation](https://www.thailand-business-news.com/asean/indonesia/331229-offering-incentives-for-companies-on-the-green-list-with-the-idx-green-equity-designation)󠁿

###  󠀁[Digital Economy and E-Commerce: ASEAN’s $1 Trillion Growth Engine](https://www.thailand-business-news.com/asean/323792-digital-economy-and-e-commerce-aseans-1-trillion-growth-engine)󠁿

###  󠀁[The Digital Money Revolution: How a trillion-dollar transformation unfolded in Southeast Asia without much notice](https://www.thailand-business-news.com/set/330758-the-digital-money-revolution-how-a-trillion-dollar-transformation-unfolded-in-southeast-asia-without-much-notice)󠁿

 1. **Market Surveillance System:** The SET has upgraded its market surveillance system
    to detect unusual trading patterns, price manipulation, and other suspicious activities
    in real-time. This system uses advanced algorithms and data analytics to identify
    potential irregularities and flag them for further investigation.
 2. **Enhanced Reporting Requirements:** Listed companies and market participants are
    now required to provide more detailed and timely information about their trading
    activities. This includes disclosures of large shareholdings, changes in shareholding
    structures, and any related party transactions.
 3. **Increased Penalties:** The SET has increased the penalties for violations of 
    its trading rules and regulations. This serves as a deterrent against market misconduct
    and encourages compliance with the exchange’s guidelines.
 4. **Collaboration with Regulators:** The SET has strengthened its collaboration with
    other regulatory bodies, such as the Securities and Exchange Commission (SEC) of
    Thailand, to share information and coordinate enforcement actions.
 5. **Investor Education:** The SET has also focused on investor education to raise
    awareness about market risks and responsible trading practices. This includes providing
    educational resources, conducting workshops, and disseminating information through
    various channels.

By implementing these measures, the SET aims to enhance the integrity and transparency
of the Thai capital market, protect investors from potential misconduct, and maintain
a fair and orderly trading environment.