Bangkok, June 2 – SET reveals that 80% of PT/HFT investors in Thailand are in the SET 100, pointing out the criteria that must be registered before trading. To control investment risks Market Overview
Corporate Strategy Department The Stock Exchange of Thailand (SET) published a research article titled “PROGRAM & HIGH FREQUENCY TRADING and REGULATORY GUIDELINES OF REGIONAL SET” via SET NOTE stating that the automatic sending of trading orders by processing and making trading decisions with the program. or program trading (PT) is very popular among institutional investors around the world. because it improves the efficiency of sending trading orders by group investors High-frequency trading (HFT) is a type of program trading investor that employs high-speed strategies. And don’t like to hold securities for a long time, with HFT accounting for approximately 50% of the turnover on the US stock market and about 24-43% of the turnover on the European stock market in 2020 and 9% of the turnover on the Thai stock market in 2022.
From the behavior of the HFT program in the Thai stock market in 2022, it was found that 80% of all trading turnover. Concentrated only in large securities (SET100 group) and 96% of the total number of securities in the SET100 have HFT participating in only 15% of the trading value of each security. As for small and medium-sized securities (groups outside the SET100), it was found that almost all of them had less than 10% of HFT involved in trading.
Major stock exchanges in the region Both stock exchanges focusing on institutional investors such as the Hong Kong Stock Exchange, Singapore and those focusing on the individual investor base. (The proportion of individual investors is 35-80% in each market) such as the Korean stock market, Taiwan, Malaysia, Indonesia, treating PT/HFT group investors like general investors. All securities can be traded and there is no additional fee for being an investor of this type. Including not using any system to slow down the speed of the orders sent
However, in order to tighten the supervision and control of the risk of order execution with program trading. Most exchanges in the region, including Thailand, require PT/HFT registration first. therefore able to send trading orders To help tighten the supervision and control of risks. Including guidelines for risk management that securities companies must comply with. for detection of trading orders that may be sent incorrectly accidentally miss or prevent improper delivery of commands which may affect the overall market.-Thai News Agency
Source: Thai News Agency