The end of hot stocks, hot stocks. Understand the 3 latest additional measures to raise confidence in the capital market. Ready to be enforced on 2 September. At the Spokesperson's Press Conference on August 22, 2024, Mr. Rongrak Panaphavuttikul, Deputy Managing Director and Spokesperson of the Stock Exchange of Thailand, spoke about the progress of the implementation of 3 measures to enhance confidence in the capital market, which will be effective from September 2 onwards, including setting the trading price framework as Dynamic Price Band, trading by Auction method, and setting Minimum Resting Time to reduce volatility and protect investors in the event of stock prices that may be traded abnormally. For the Auction matching measure, it is an increase in the intensity of the measure to supervise the trading of securities that are traded abnormally from the current measures by adding a method of matching the trading in one go (Auction) according to the time period specified by the Stock Exchange of Thaila nd for securities that are traded abnormally and the Stock Exchange of Thailand has specified them to be in the measure from level 2 and above. The matching of trading will be opened 3 times a day: Pre-open 1, Pre-open 2, Pre-close). As for the No-Matching 1 and No-Matching 2 periods, orders will not be allowed to be sent, but orders can be edited or canceled. In the event that the Underlying shares of SSF (Single Stock Future or Common Stock Futures Contract) traded on TFEX enter the TFEX Auction measures, it will be conducted by: Investors will still be able to trade SSF as usual. If it is the last trading day of SSF, TFEX will calculate the delivery price using the reference to calculate the price difference to be used to pay off the debt on the last trading day using the last Auction trading price of the Underlying shares. TFEX may reduce the position limit of such SSF. Investors can continue to hold the original SSF, but cannot increase the position beyond the amount specified by TFEX. The second me asure is to set a Dynamic Price Band (DPB) trading price framework for each security (±10% from the latest trading price of that security) in addition to the current Ceiling and Floor (±30% from the closing price on the previous business day) to increase the mechanism to control the volatility of the trading price of securities, which will cover only securities priced at more than 1 baht. The first phase covers common stocks, trust units such as REITs, mutual fund investment units such as Property Funds. The second phase is expected to be expanded to cover securities with the above securities as underlyings such as DW and securities traded in small units (odd-lot) and foreign securities. However, such supervision shall not apply to securities that have events that may result in a price change that is greater than normal, such as newly listed stocks, or stocks that the market has expanded the Celling and Floor daily, such as stocks with news of Tender Offer, or stocks that are temporarily open for trading , where the Stock Exchange of Thailand has announced the reason that the Dynamic Price Band (DPB) criteria will not be used. 'Confirming that the case of shares listed on the first day of trading, IPO, is not subject to the Dynamic Price Band (DPB) measure and does not limit the ceiling of the IPO share price because in principle, the Stock Exchange wants the price of the securities to be able to move at an appropriate price on the first day of trading. However, on the following day, it must also enter the Dynamic Price Band (DPB) measure if it meets the specified criteria,' said Mr. Rongrak. The third measure is setting a minimum time for a trading order before it can be modified or cancelled (Minimum Resting Time). Trading orders must remain in the system for at least 250 milliseconds (greater than or equal to 0.250 seconds) before they can be modified or cancelled. This is to slow down and prevent the occurrence of trading orders in the form of inserts and withdrawals that are too frequent, which may cau se investors to misunderstand that there is a need to buy or sell securities in large quantities. 'It is mainly used to supervise Program Trading, which sets a minimum time for trading orders before they can be modified or cancelled (Minimum Resting Time). It also covers IPO shares and does not apply to Market Makers registered with SET or TFEX and responsible for liquidity management. We believe that these measures will help protect investors in the event of volatility in securities prices. These are regulatory measures that are not only implemented by the Thai Stock Exchange, but also by other countries to be in line with the context of each country,' concluded Mr. Rongrak. Source: Thai News Agency