Thailand’s bourse will limit short-selling and high-frequency trading to constituent stocks of the benchmark SET100 index from April 1 to help revive investor confidence, Bloomberg reported, quoting Asadej Kongsiri, president of the Stock Exchange of Thailand (SET).
The bourse currently permits short-selling for some non-SET100 constituents as long as they meet certain requirements, while there are no restrictions on high-frequency trading, Asadej said at a press briefing, according to the report published on February 20.
“We hope that the stricter rules will lessen any excessive swings in the share prices. This will stabilise the market and revive investor confidence,” he said.
According to information posted on the SET’s website, short-selling trades now account for around 4% of daily turnover.
Spokespersons for the bourse did not immediately respond to questions from Asia Asset Management.