Bangkok--22 Sep--SET
The Stock Exchange of Thailand (SET) is enhancing liquidity in the Thai capital market by supporting algorithmic trading by institutional investors. SET is therefore adjusting its regulations to further support diversified investment strategies, reducing obstacles to efficient trading, and educating securities companies and domestic institutional investors about algorithmic trading.
“SET supports algorithmic trading, as increasing liquidity is important to us. There is much potential for us to grow in using algorithmic trading. In 2008, for example, such programs in Singapore Stock Exchange accounted for 15.0% of total value of trades; for Korea Stock Exchange, the figure was 13.5%, for Tokyo Stock Exchange, it was 9.3%, and for us, it was just 0.7%,” revealed SET Chief Marketing Officer, Markets & Post-Trade Services Sopawadee Lertmanaschai.
Algorithmic trading uses computer models to transmit a series of trading orders that, taken together, will meet client-determined parameters as to timing, price, and/or trading volume. Algorithmic trading is very popular among fund managers in executing investment strategies or managing portfolios, including the United States, Europe, and some countries in Asia.
“SET will support algorithmic trading, including through Direct Market Access (DMA), (which allows institutional investors to submit orders from their computers through the member companies’ trading systems without input from member company staff). Moreover, facilitating implementation of different investment strategies will result in overall development of the Thai capital market,” added Ms. Sopawadee.
SET has conducted the “Algorithmic Trading : The Rising Star” seminar to expand understanding of algorithmic trading, with the generous cooperation from Thomson Reuter and FlexTrade, which have extensive experience in providing algorithmic trading services in other countries.
The development of algorithmic trading started in Thailand in 2006. Originally, SET permitted usage of only basic strategies but has gradually opened the market to different types of strategies. Currently, there are strategies permitted, such as, VWAP (Volume Weighted Average Price), TWAP(Time Weighted Average Price), Volume Inline, Price Inline, TEX, Iceberg, Float, Close and MOC. For more information, or permission to use more complicated strategies, please contact SET Market Development Department at 662 229 2786-90 or contact [email protected].
For more information, please contact S-E-T Call Center 0 2229 2222
Press office, please contact Public Relations Unit, the Corporate Communications Dept.: Ladawan Kantawong Tel: 0-2229-2036 / Kanokwan Khemmalai Tel: 0-2229-2048 / Panitee Chatpolarak Tel: 0-2229-2792