Thailand’s central bank, the Bank of Thailand (BOT), allows short selling by commercial and retail banks once they have applied for and received a license from the Securities and Exchange Commission (SEC) to borrow and lend securities. Eligible securities for short selling are defined as debt instruments, equity instruments, and investment trusts under purview of the Thailand Securities Depository Co., Ltd. (TSD).
As a third party agent or broker, commercial banks can trade for individuals, juristic persons, and institutional investors. They may carry out securities borrowing or lending with institutional investors only. Securities lending, acting as an agent for securities lending, and any other transactions that results in lending THB-denominated liquidity to nonresidents are prohibited.
Retail banks can short sell only for hedging risks or for managing risk of their own accounts; and only with those licensed to borrow or lend securities under securities and exchange laws, or with the Thailand Securities Depository Co., Ltd. (TSD)
Detailed BOT and Stock Exchange of Thailand (SET) rules for short selling and regulations for listed securities are provided through the links below. SET’s Bond Electronic Exchange (BEX) follows SET rules for short selling. Only securities specified by SET are available for short selling.
The Thailand Futures Exchange Plc (TFEX), a subsidiary of the Stock Exchange of Thailand (SET), was established in May 2004 as a derivatives exchange. TFEX is governed by the Derivatives Act B.E. 2546 (2003) and is under the supervision of the Securities and Exchange Commission (SEC).
TFEX launched products such as SET50 Index Futures, SET50 Index Options, Stock Futures, and Gold Futures.
The Bank of Thailand (BOT) has included the development of an interest rate swap market as part of its measures for secondary domestic market development.
BOT provides data on commercial banks' outstanding interest rate swaps classified by counterparty. This information is provided through the relevant BOT link below.