The Stock Exchange of Thailand (SET) announced that its Board of Directors, in a meeting held today (February 19, 2025), has approved revisions to the measures introduced in 2024 to enhance stock market confidence. These revisions were carefully reviewed to ensure their suitability under different market conditions, with the goal of strengthening investor confidence and maintaining stability in the Thai stock market.
Moving forward, SET will seek feedback from relevant stakeholders before submitting the proposed measures to the Securities and Exchange Commission (SEC) for approval. The new measures are expected to take effect by the end of the second quarter of this year.
Key Highlights of the Revisions
(1) Short Selling Regulations
The eligibility criteria for short-sellable securities have been revised. Short selling will now be allowed only for securities listed in the SET100 index, whereas previously, it was permitted for SET100 and certain large, highly liquid non-SET100 stocks. (Previously, eligible non-SET100 stocks needed to have an average 3-month market capitalization of at least THB 7.5 billion, a 12-month average monthly turnover of at least 2%, and a free float of at least 20% of paid-up capital.)
The Uptick Rule will apply only when necessary. Under normal circumstances, short selling will follow the Zero-Plus Tick Rule. However, if a security’s price declines by a specified percentage (e.g., ≥X% from the previous day’s closing price), short selling of that security will be subject to the Uptick Rule on the following trading day.
(2) High-Frequency Trading (HFT) Regulations
Registered High-Frequency Trading (HFT) investors will only be allowed to trade securities within the SET100 index. This restriction does not apply to market makers and certain types of securities.
(3) Relaxation of Measures Introduced in 2024
The Minimum Resting Time requirement, which mandated a minimum duration before an order could be canceled, will be removed.
The implementation of Phase 2 of the Dynamic Price Band, which sets individual stock price fluctuation limits, will be postponed.
To ensure policy consistency and market confidence, the SET will maintain both the existing and newly revised measures in place continuously. A further review of these measures is scheduled for 2026.
