1 week Ago
The government plans to lift temporary measures to reduce volatility on the Stock Exchange of Thailand (SET), the Market for Alternative Investment (MAI) and the Thailand Futures Exchange (TFEX) on April 16. Three measures have been implemented since April 8. First, the ceiling and floor prices were halved.
For example, for ordinary stocks the fluctuation range was reduced from ±30% to ±15%. The price range returns to ±30% as before on April 16. Second, the dynamic price band was adjusted from ±10% to ±5% from the latest trading price.
The band will return to ±10%. A dynamic price band is a market mechanism designed to limit excessive price volatility in securities or derivatives trading within a trading session. It sets a dynamic range within which buy and sell orders can be executed, preventing sudden and extreme price fluctuations.
This mechanism is used in various financial markets globally and serves to enhance market stability, protect investors, and reduce the risk of price manipulation. Third, a temporary ban was enacted on short selling of all securities in the stock exchange, except for market makers. Short selling is going to be allowed only for SET 100 stocks, according to the bourse.
Regarding bot trading, Finance Minister Pichai Chunhavajira said he intends to allow such trading only among SET 100 equities after Songkran, though he is uncertain if the process will be ready in time, as the system needs to be updated. In a separate development, Mr Pichai said he will propose Satit Limpongpan as chairman of the selection committee for the new governor of the Bank of Thailand. He said he approached Mr Satit, the former permanent finance secretary, about the position.
"I have not yet received a formal letter proposing the names for chairman of the central bank governor selection board, but I have approached Mr Satit to help lead the board," said Mr Pichai. The current governor of the Bank of Thailand completes his term in September. Mr Satit serves as chairman of the selection committee for the new chairman of the central bank board, which is conducting a final qualifications check and preparing to submit the new board chairman for the cabinet's consideration.
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