Bangkok--26 Apr--SET
The Stock Exchange of Thailand (SET)’s board of governors resolved April 25 to amend rules to facilitate listing and trading of equity exchange-traded funds (ETFs). A listed equity ETF needs to have a market maker and can be sold short. Other rule adjustments will be to assure ETF liquidity, attractiveness and success.
The new rules should provide an attractive alternative for investors and help enhance the bourse’s attractiveness as per SET’s three-year strategic plans, SET Executive Vice President and Board Secretary Mr. Suthichai Chitvanich said.
The rule adjustments will include a requirement for a listed equity ETF to have a market maker so that the fund’s liquidity and success can be assured. The market maker’s role will reduce the fund discount problem and reduce any wide spread between the highest bid and offer. If such a big gap occurs, an investment management firm approved by SET will be responsible for defining the gap scenarios.
An equity ETF can also be traded by short-selling. Participating dealers will also be able to send basket orders without specifying the value per basket. The use of program trading will also be allowed if the program to be used has been approved by SET.
“These rule amendments have been thoroughly considered and studied by examining those of other exchanges. The rules will be flexible to serve further development of ETFs in Thailand, as well as to assure the success of an equity ETF in the Thai market,” Mr. Suthichai said.
The next step is to hold a hearing among SET member companies and relevant parties before seeking approval from SEC.
For more information, please contact the Corporate Communications Dept.:
Ladawan Kantawong Tel: 0-2229-2036 / Sarinluck Jitkawong Tel: 0-2229-2037 /
Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797