Thai Exchange Revises Short-Selling and High-Frequency Trading Rules

The Thai Stock Exchange will implement revised rules starting November 16, including adjustments to short-selling and high-frequency trading aimed at enhancing market stability, liquidity, and investor confidence. The exchange will allow stocks priced between 5 and 50 baht to trade in smaller price increments, aiming to narrow bid-ask spreads and reduce transaction costs. Under the new regulations, investors will be permitted to short securities at prices equal to or higher than the latest transaction price. Additionally, the Thai Stock Exchange will impose extra fees on accounts that submit large volumes of orders but achieve relatively few executions. To lower trading barriers, the exchange will eliminate dynamic price fluctuation limits for individual securities, relax restrictions on high-frequency traders regarding their trading targets, and remove minimum order duration requirements to improve order management efficiency.