The Stock Exchange of Thailand (SET) on March 26, 2024, announced that the regulator will disclose the name of securities that have not yet been repurchased after being shorted, starting April 9, 2024.
In a letter, SET stated that the resolution of various measures were approved by the Stock Exchange of Thailand Board to raise the level of supervision of short selling and the use of computers to send orders (Program Trading) to strengthen confidence, transparency, and equality for investors. One measure involves disclosure of information on short-selling securities that have not yet been repurchased (Outstanding Short Positions).
In this regard, the Stock Exchange will begin disclosing such information on the Stock Exchange’s website. www.set.or.th from April 9, 2024 onwards.
The measure came after months of volatility in the market due to weakened economic outlook that pressure fund flows to leave Thailand. Meanwhile, concerns over an illegal naked short selling are also the cause that diminishes investors confidence.
The Thai stock market regulators released several statements of it looking for ways to keep short selling in check due to claims from various sources that there were naked short selling in the market that deviated the actual market value, while those doing illegal trading and also using a faster robot trading were making profit out of local individuals.
Naked short selling is not new to the market, but it is difficult to keep it in check. Late last year, South Korea announced a temporary ban on short selling, while also punishing three brokerage companies and funds for doing so. Meanwhile, China also introduced a more restricted measure to control short selling in the market.
