Online stock hurdle rejected
The board of directors of the Securities and Exchange Commission has dismissed a proposal by the Stock Exchange of Thailand and the Association of Securities Companies to require investors who trade via the Internet to put up 100-per-cent cash deposits ahead of trading.
A proposal to prohibit marketing officers from keying orders for investors who trade online was also rejected by the board, said an informed source in the broker community. The board has turned down the proposals because it considers they would create unfairness, the source said, conceding that the proposals came as brokers were concerned that stock investors might shift online for the cheaper transaction fee. Stock investors are charged 0.15 per cent of a transaction's value if they trade online and 0.25 per cent if they trade through marketing officers. If big stock players switched to trading online, it would have an impact on the whole brokerage industry, the source added. "Brokering in Thailand is not yet so sophisticated that online stock trading can be the main source of orders. We need a certain time for development. We shall discuss a solution with the SEC," the source said.
Siriporn Chanjindamanee The Nation
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