SET Imposes Trading Curbs Amid Tariff Turmoil

Exchange acts to curb volatility following global market downturn

 

The Stock Exchange of Thailand (SET) has introduced temporary measures to address potential market volatility following recent tariff policy changes that have triggered a global downturn.  

 

Approved by the SET's Board of Governors (BoG) on Monday, these measures are designed to provide investors with time for assessment and analysis to inform their investment decisions.  The Thailand Futures Exchange pcl (TFEX) Board of Directors has also approved corresponding trading measures.

 

Key changes include adjustments to ceiling and floor limits across the SET, mai, and TFEX.  For stocks and unit trusts on the SET and mai, these limits will shift from +/- 30% to +/- 15%.  Foreign shares will see a change from +/- 60% to +/- 30%.  

 

Similarly, index futures/options, sector futures, and single stock futures on the TFEX will move from +/- 30% to +/- 15%.  These revised daily ceiling and floor limits will not apply to Depositary Receipts (DR) and Depositary Receipts x (DRx) products. 

  

Furthermore, security-specific dynamic price bands will be adjusted, with the threshold reduced from ±10% to ±5% of the last executed price.  A temporary prohibition on short-selling of all securities will also be implemented, with exemptions for market makers on the SET, mai, and TFEX.   

 

The revised measures will be effective from Tuesday (April 8, 2025), and will remain in place until no later than April 11, 2025.  The SET will continuously monitor market conditions and recalibrate the measures as needed.

 

The SET has expressed confidence that these precautionary steps will effectively stabilise market conditions and bolster investor confidence. 
  

Following the SET and TFEX Boards of Governors' announcement of temporary trading measures effective from Tuesday onwards, Securities and Exchange Commission (SEC) secretary-general Pornanong Budsaratragoon addressed the market.  

 

She clarified that these actions fall within the authority granted to the SET and TFEX under regulations approved by the SEC Committee and the Capital Market Supervisory Board, designed to manage events that could impact the market. 

 

Pornanong stated that the SEC has maintained close and continuous coordination with the SET and TFEX.

 

"The SEC believes that these temporary measures will contribute to reducing trading volatility in both the SET and TFEX, ultimately benefiting the overall capital market. The regulatory body will continue its oversight, working with the exchanges to assess the ongoing situation, the effects of the measures, and the broader market context," she stated.

(2025/04/07-00:00)