Extended online trading likely

A foreign investor trades stock over the Internet.

Investors may soon trade PTT, Banpu and other Thai stocks anywhere via the Internet from 7-9pm if the board of the Stock Exchange of Thailand (SET) grants approval.

An SET source said the issue would be at the top of the agenda at the board's July meeting.

The committee studying and amending SET regulations floated the idea of the Thai stock market extending its trading period for another two hours, but investors should be allowed to order only via the Internet, the source said.

The idea has already been discussed with SET president Pata-reeya Benjapholchai and Securities and Exchange Commission (SEC) secretary-general Thirachai Phuvanatnaranubala.

"Initially, we spoke with the SET and the SEC, and both supported the idea, because the capital market could benefit from it, particularly through an expansion of the investor base. We believe the number of both local and foreign investors would increase, due to longer trading hours. The United States and some European countries allow investors to trade stocks around the clock," the source said.

The extra trading period would be aimed at allowing additional time for both local and foreign investors to trade stocks, enlarging the investor base in line with SET policy and increasing trading liquidity and volume, the source said.

The SET now has two trading sessions. The morning session runs from 10am to 12.30pm and the afternoon session from 2.30-4.30pm.

Trading over the Internet would be a proper and the most convenient channel, as Thailand's Internet system is sophisticated enough for efficient trading, the source said. Also, Internet trading does not place additional burdens on brokers or have any effect on their operating hours, because only two staff can handle the trades, the source said.

At the proposed 9pm close, the SET Index would be used as a reference for trade on the following trading day, the source explained.

If the SET's board of governors approves the extra trading hours, the SET will have to make plans and arrange and details to receive approval from the securities regulator. A survey of brokers' opinions and a hearing will be conducted later.

If the board disagrees, the issue will be dropped, the source said.

"I admit the extra trading period is a big issue that needs prudent consideration, because the deriv atives-market trading hours may have to be extended, as well. It will take time for a hearing," the source said.

Earlier, the SET's board approved improvements to the turnover list's regulations and a reduction in the spread from 10 trading-price ranges to eight as proposed by the committee.

The amended turnover list will be implemented from tomorrow, while the adjustment in the spread of trading-price ranges is still undergoing hearings.