Thailand’s stock and futures exchanges are changing their rules ahead of the launch of a new trading system in the first quarter to better align with international standards.
“The revised regulations will take effect simultaneously with the commencement of the new trading system in the first quarter of 2023,” the Stock Exchange of Thailand and Thailand Futures Exchange said in statements on Friday.
Regulations on the equilibrium price will be adjusted to be in line with the new trading system. The equilibrium price can fall outside the ceiling and floor but not exceed plus or minus one tick, the exchanges said. The previous rules required the price to be within a range not exceeding the ceiling and floor.
The P, or pause, sign will replace the SP, or suspension, sign in the event that stocks are subject to market surveillance measures governing abnormal securities trading.
Overnight orders will be introduced for the SET index and Market for Alternative Investment index.
Order types can be either “Good till Cancel” or “Good till Date,” according to the statements. Unmatched orders will be kept in the SET’s trading system until cancellation or specified dates, and the system will keep such orders for no longer than 30 days.
The ceiling and floor of foreign shares will be adjusted to plus or minus 60% of the reference price for all trading methods.
An odd lot, of which the transaction size is fewer than 100 units, will be canceled for the trading of derivative warrants.
The session state order, whereby orders will be executed at a specific session, will be adopted for the Thailand Futures Exchange on top of the price triggered order, according to the TFEX statement.
The SET and TFEX may also cancel trading orders during any period of system disruption to cope with emergencies or prevent damage to overall trading, the exchanges said.
