2023-11-21 08:51:00
SET plans to set up a special working group to monitor “ROBOT TRADE -Naked Short” following it became such a scandal that a daily news conference had to be set up. Ready to issue measures to require securities companies to submit evidence to customers confirming the existence of shares in their possession. Before the short sale went out? Set the time frame within 15 days before being automatically adjusted to be considered a Naked Short, along with asking the SEC to proceed further and coordinate technical foreign stock markets to compare equality with trading program users. without using a trading program
Mr. Rongrak Panapawutthikul, Deputy Manager, Head of Legal Department and head of the corporate secretarial and organizational supervision group Stock Exchange of Thailand Set up a press conference to explain the hot issue “Naked Short-ROBOT” that is still a problem in the stock market at this time. With clarification to “Guidelines for further enhancing supervision,” especially the issue of supervision of ROBOT TRADE and Naked Short trading, which Mr. Rongrak said he is preparing to set up a special working group to help provide advice. and recommendations for examining the trading of ROBOT TRADE and Naked Short by inviting representatives from the Securities and Exchange Commission (SEC), representatives from the SET Representatives from the NASDAQ Stock Exchange (NASDAQ) and the South Korean Stock Exchange (KRX) joined the joint working group this time.
“From the problems that arise The SET plans to set up a special working group. To help take care of checking the trading of ROBOT TRADE and Naked Short to find ways to prevent problems from occurring. and solve existing problems”
As for the inspection of short sale transactions, the SET has increased the criteria for reporting stock holdings. By requiring securities companies to send information on securities holdings of customers who engage in short sales transactions to the stock exchange. Within a period of 15 days, if the time is due No information has been sent yet. It will be considered an offense and the transaction will be automatically designated as a Naked Short. Disciplinary action will also be taken. The broker can submit evidence or make a defense at the disciplinary stage. But if it is found that there is a short sale without the customer having any shares in their possession before selling. Disciplinary action once morest brokers From a warning Compare fines, probation, and the most severe penalty is suspension of business license.
At the same time, the SET is still preparing to have a review. and coordinate with technical experts To compare transactions between Trading between ROBOT TRADE and investments that are not traded through the program That there are differences or not, how much?
In addition, the SET has sent circular letters to member securities companies. and not a member Including the company making the role of custodian. in order to be strict To check customer stock holdings Before conducting a trading transaction or not
At the same time, the SET has also coordinated with SEC to request help in investigating trading accounts that has more than 1 person trading (Omnibus) because this type of account is usually the account of a foreign investor. and there is a foreign custodian to keep the stocks, which the SET itself has limitations, unable to inspect such information, but the SEC, which is a regulatory agency in Thailand and is a member of IOSCO and has the authority to coordinate with the SEC of each country. to request to verify information
“After yesterday’s incident (20 Nov.), the SET board of directors is not complacent. An urgent meeting was called. To consider and find guidelines for solving the “short sale” problem, whether to change the original criteria that determine the price of a short sale using the Price Rule method to a price for making a short sale at a price higher than the last price or Uptick. Rule or not, through the committee meeting The SET has considered and is of the opinion that Current stock market situation There is no abnormality. and there has not been an event that has a significant impact, such as a severe decrease, such as in the case of a circuit breaker that has enforcement measures to reduce damage. As a result, it is still allowed to use the current short sale price criteria, that is, the short sale price must not be lower than the latest market price,” Mr. Rongrak concluded.
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