Bangkok: The Stock Exchange of Thailand (SET) is exploring new strategies to refine the regulatory framework of its capital market, with intentions to reduce tick size and implement additional fees. Public consultations regarding these proposed changes will be conducted from May 13-29, 2026.
According to Thai News Agency, Mr. Assadej Kongsiri, the Director and President of SET, stated that the exchange is reviewing its trading regulations to bolster stakeholder confidence. The initiative is part of SET's strategic vision to serve as "The Trusted Gateway to Inclusive Opportunities," aiming to improve liquidity and investor assurance. The consultation seeks input on "Improving Measures to Enhance Confidence," covering a range of regulatory adjustments.
In Group 1, the proposed measures focus on improving market quality and efficiency. A key change includes reducing the tick size for securities priced between 5-50 baht per share, aimed at narrowing price spreads and enhancing order matching, which would reduce trading costs and boost liquidity. Additionally, accounts with a high order-to-trade ratio and low deal matching will incur a fee of 0.15 THB per transaction for orders exceeding 30,000 daily transactions, addressing the true cost of execution and alleviating system strain.
Group 2 targets reducing abnormal volatility in security prices. A revised Uptick Rule will apply if a security's price drops by 10% or more, curtailing selling pressure in volatile conditions. The rules for short-selling will be revised to include only highly liquid stocks like those in the SET100, while prohibiting short-selling of certain underlying assets. The Dynamic Price Band for individual securities will be abolished to ease trading in illiquid stocks.
Group 3 addresses inappropriate trading behavior. High-Speed Trading will be monitored post-trade, based on behavior such as order frequency and volume. Restrictions on short-selling will be lifted, focusing regulation on highly liquid securities. The Minimum Resting Time measure will be abolished due to its limited impact, with AI tools being utilized to detect abnormal trading behavior.
The consultation document is available on the SET website under "Improving Measures to Enhance Confidence," and stakeholders are encouraged to submit their feedback by May 29, 2026. Post-consultation, SET will forward all comments to the Securities and Exchange Commission for review before implementing the regulations for 18 months, with provisions for reassessment if significant market events occur.