Thailand proposes changes to securities trading regulations
08 October 2024 Thailand
Image: nukul2533/stock.adobe.com
The Securities and Exchange Commission of Thailand (SEC) has published draft amendments to the regulations related to securities trading services, including short and long selling transactions.
The proposed amendments, approved by the Capital Market Supervisory Board, aim to enhance the oversight of securities trading services, maintain fair practices, and clarify service provision of securities companies.
The SEC is seeking feedback on the proposals from stakeholders and interested parties in a public hearing running until 31 October.
Key changes include conducting know-your-process (KYP) due diligence, implementing systems to monitor client transactions, establishing agreements with clients on fines for non-compliance, verifying client securities ownership or borrowing before trades, and introducing post-trade monitoring for “potentially inappropriate” transactions.
Currently, a large 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 behaviours.
Therefore, the SEC sees it as “essential” to establish regulations ensuring that Thai securities companies implement “stringent” processes and systems for screening and monitoring.
Through this move, the SEC aims to ensure that foreign securities companies comply appropriately with the regulations related to short selling and long selling transactions, as clients of Thai securities companies.
The proposed amendments, approved by the Capital Market Supervisory Board, aim to enhance the oversight of securities trading services, maintain fair practices, and clarify service provision of securities companies.
The SEC is seeking feedback on the proposals from stakeholders and interested parties in a public hearing running until 31 October.
Key changes include conducting know-your-process (KYP) due diligence, implementing systems to monitor client transactions, establishing agreements with clients on fines for non-compliance, verifying client securities ownership or borrowing before trades, and introducing post-trade monitoring for “potentially inappropriate” transactions.
Currently, a large 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 behaviours.
Therefore, the SEC sees it as “essential” to establish regulations ensuring that Thai securities companies implement “stringent” processes and systems for screening and monitoring.
Through this move, the SEC aims to ensure that foreign securities companies comply appropriately with the regulations related to short selling and long selling transactions, as clients of Thai securities companies.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
