Stock Exchange of Thailand (SET)
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The Stock Exchange of Thailand (SET)
The SET operates under the regulatory framework of the Securities and Exchange Act (SEA), which in 1992 replaced the SET Act (1974). The SEA establishes the Securities and Exchange Commission (SEC) as the sole supervisor of the entire securities industry.
As defined in the SEA (1992), the SET’s primary roles are:
1. To serve as a center for the trading of listed securities, and to provide the essential systems needed to facilitate securities trading;
2. To undertake any business relating to the Securities Exchange, such as a clearing house, securities depository center, securities registrar, or similar activities;
3. To undertake any other business approved by the SEC.
Trading at the SET began on April 30, 1975 and the exchange has never closed since then. The SET is Thailand’s main exchange and is not linked to any other exchanges for cross-listing purposes. It is a non-profit organization and, as a government agency, is funded out of the country’s annual budget.
The SET’s board of directors is made up of not more than eleven people. Five are appointed by the SEC and five elected by the SET’s members (ie brokers). The SET President is appointed by the board, and is an ex-officio member of the board. The board also formulates the SET’s policies and supervises the exchange’s operations; however, the SEC must also approve certain rules and regulations prescribed by the board.
The SET has operated fully computerized trading since April 1991, through the "Automated System for the Stock Exchange of Thailand", or ASSET, which enables trading to be efficient, equitable and fluid. In this trading system, two principal methods of trading are available:
1. AOM: Brokerage members key in their offers from their offices, these orders are sent through the SET’s mainframe computer and executed according to price and time priority. In terms of the matching process continuous order matching is used.
* Continuous Order Matching procedures operate during the regular trading sessions. The ASSET continuously matches the first buy and sell orders in the queue, and at the same time, confirms each executed transaction via the member’s (broker’s) terminal.
2. PT: Buying and selling brokers conduct negotiations privately and then confirm the transactions through the SET’s computer.
These systems are used depending upon which board the shares are traded on. AOM is used for trading on the Main and Odd Lot Boards, while PT is used for trading on the Special Board (except odd lots) and the Big Lot Board. For Foreign Board trading, both systems are utilized.
Big Lot Board is used for trading of common or preferred stocks, warrants or unit trusts in quantities of more than THB3 million or one million shares. No spread or price limit is applied. Effective since July 3, 2006, only the settlement cycle of the big lot trading of equity securities which are traded under the cash trading account and on the big lot trading board for minimum trading value of THB50 million can be shifted to before T+3, if clients choose to settle on a gross basis.
Monday to Friday
Morning Session: 10:00 – 12:30*
Afternoon Session: 14:30 – 16:30*
Off-hours trading: 16:30 – 17:00
* There are random opening times between 09:55 and 10:00 for calculating opening prices in the morning trading session, and between 14:25 and 14:30 for calculating opening prices in the afternoon trading session. Closing time varies between 16:35 and 16:40 for the calculation of the days closing process.
Off hours trading starts from the random closing time until 17:00.
Equities: Common shares, preferred shares, warrants, non-voting depository receipts (NVDRs), transferable subscription rights
Debt: Corporate debt, straight debt, debentures, convertible debentures, government bonds
Money Market: None
Other: Unit trusts, mutual funds (certificates issued by investment companies)
Derivatives: SET50 Index Futures
Main Board: 100 shares. Trades must be at least one board lot, or multiples thereof.
Odd Lot: less than one board lot
Big Lot: for lots greater than THB3 million or more than one million shares. Minimum trading value of THB50 million applies of investors choose to settle on a gross basis and before T+3.
Debt: No set board lots