THAILAND LAW AND PRACTICE Contributed by: Wongsakrit Khajangson, Panupan Udomsuvannakul, Koraphot Jirachocksubsin and Pitchaya Roongroajsataporn, Chandler Mori Hamad a
• insider trading – anyone who has material inside information is prohibited from the buying or selling of securities to which such inside information is related; • market manipulation – trading of securities with the intent to manipulate the market is prohibited; and • misstatement – dissemination of false information with an intent to mislead is also prohibited. 7. High-Frequency and Algorithmic Trading 7.1 Creation and Usage Regulations The regulations do not specifically state the criteria for using algorithmic trading for each asset. However, under the Stock Exchange of Thailand (SET) Notification Re: Procedures on Trading, Clearing and Settlement of Securities in the Exchange, specifying the criteria for the use of computer programs in cre - ating and recording orders automatically (“Program Trading”) including algorithmic trading, an operator who wishes to use Program Trading has to obtain approval from the SET prior to such use. The SET also provides guidelines regarding the quali - fications and criteria for Program Trading that will be used in the market. Under SET Notification Re: Persons Involved in the Trading System B.E. 2555 (2012), a person meeting the following criteria can register as a market maker: • being an SET member or a non-member certified as a market maker by a member and undertaking clearing and settlement through such member; • having market-making experience or personnel qualified to be a market maker; • having systems or procedures and risk manage - ment policies relating to market making; • not currently being subject to a five-year prohibi - tion from registering as a market maker by the SET; and • meeting other SET criteria. 7.2 Requirement To Be Licensed or Registered as a Market Maker When Functioning in a Principal Capacity
Moreover, the Thailand Futures Exchange (TFEX) has established the following criteria for registering as a market maker: • being a TFEX member, a member’s corporate cli - ent named by the member as a market maker, or any other juristic person with a clearing guarantee agreement; • having market-making experience in derivatives trading or personnel qualified to be a market maker; • having adequate system readiness or procedures and risk management policies relating to market making; and • maintaining financial stability with no risks affecting market-making duties. TFEX may set additional criteria for persons wishing to be any of the following market makers: • juristic person customers or juristic persons with clearing guarantee agreements; or • market makers in futures with regulator-approved underlying goods or variables. 7.3 Regulatory Distinction Between Funds and Dealers From a regulatory perspective, there is no distinction between funds and dealers in the algorithmic trading area. 7.4 Regulation of Programmers and Programming There is no regulation under Thai law specifically gov - erning programmers and programming. However, for programming, an algorithm has to be approved by the relevant authority, and the programmers have to be aware of the prohibited characteristics of trading as specified in the SEC Act.
8. Insurtech 8.1 Underwriting Processes
Underwriting processes differ according to the prod - ucts and business operators. The relevant insurance laws (ie, the Life Insurance Act B.E. 2535 (1992) and the Non-Life Insurance Act B.E. 2535 (1992)) govern
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