Thailand Cracks Down on Short-Selling and High-Frequency Trading With New Rules Starting November 16
Thailand's stock exchange is tightening rules on short-selling and high-speed computer trading to calm its markets.
The Stock Exchange of Thailand will introduce new rules on November 16 targeting short-selling and high-frequency trading, saying the changes aim to improve market stability, liquidity, and investor confidence [258760]. Short-selling is a strategy where investors bet on falling prices, while high-frequency trading uses powerful computers to make trades in milliseconds [258760]. The move comes as options traders elsewhere position for a drop in technology stocks at the highest rate since early summer, buying protection against declines in a sign of growing caution [258646]. Two large trades also moved against semiconductor stocks, including Micron and Nvidia, as more market players bet on falling share prices [258630]. In the memory chip sector, prices for DRAM chips have fallen, pulling stock prices down, though one market expert views the drop as a temporary buying opportunity [258638]. Meanwhile, some options traders are betting the long U.S. Treasury bond sell-off is finally ending, with confidence growing after a strong 10-year note auction [257319].