STOCK MARKET

Thai bourse announces trading rules adjustment

The Nation

BANGKOK: -- The Stock Exchange of Thailand (SET) is adjusting the ceiling and floor price, improving the calculation of opening and closing prices, increasing categories of market orders.

In a statement, it said that the trading rules are amended to comply with practices of leading international stock exchanges in order to boost trading choices and prepare the exchange for trading innovations, new products, and regional connections.The SET completed the public hearing on the improvements and its brokerage members are ready for them. The revised rules will be implemented together with the new IT trading platform in the third quarter of this year.

"Some trading rules have been amended to be more in line with standards of global leading stock exchanges. This should help facilitate investors, while enabling broker members to be ready for regional connections and increase our competitiveness at the international level. These changes underline SET’s commitment to enhance its services to match the right financial opportunities for investors and businesses and to increase attractiveness of the Thai capital market," said SET President Charamporn Jotikasthira.

Details of the adjustments are as follow:

1.Ceiling and floor prices: To increase convenience for investors and broker members in coping with international standards. On their first trading day, the ceilings and floors of IPO prices and warrants, derivative warrants (DWs), and transferable subscription rights (TSRs) have to move in symmetric price bands.

For equities and investment units, ceilings will be set at 300 percent of IPO prices, while ceilings of warrants, DWs, and TSRs must be no more than double the previous closing price of their underlying security multiplied by the exercise ratio. Floors of all mentioned securities must be no lower than Bt0.01.

2. Opening and closing prices: the opening and closing prices will be those which yield the highest volume of trading. But if there is more than one price, the new system features a more precise searching mechanism to seek the price that more accurately reflects supply and demand.

3. Market orders: market orders will be divided into categories in order to meet various demands from investors, such as special market orders, market orders, and market to limit orders. For instance, in market orders, bids and offers are matched by the trading system at market prices, and any unmatched orders left will be automatically cancelled.

4. Order amendments: the bid amount can be reduced before the trading system matches the bid with an offer without losing the bid’s place in the queue. Previously, an investor had to cancel and re-submit the bid. However, this amendment doesn’t apply to increasing the bid amount.

-- The Nation 2012-07-19

They lost me a bit on that headline.

Definition of BOURSE (which sounds like purse)

1: exchange 5a; specifically : a European stock exchange

2: a sale of numismatic or philatelic items on tables (as at a convention)

Origin of BOURSE

Middle French, literally, purse, from Medieval Latin bursa — more at purse

First Known Use: 1597

Learn More About BOURSE

Britannica.com: Encyclopedia article about "bourse"

I learn something new every day!

Edited July 20, 201213 yr by richard10365