SEC will delay liberalisation

[William]

MARKETS / ONLINE TRADING COMMISSIONS

SEC will delay liberalisation

The Securities and Exchange Commission yesterday agreed to delay liberalisation of online trading commissions for one year. But regulators also ordered brokers and the Stock Exchange of Thailand to drop proposals to change how marketing staff are paid.

Regulators had previously announced that online trading fees would fall to 0.15% from 0.2% starting last month.

But the Stock Exchange of Thailand and local brokers resisted the plan, saying that more time was needed for the industry to adjust to added competition, particularly in light of the sluggish market this year.

Under a compromise proposal approved late last month by the SET board, investors trading through cash balance or credit balance accounts can qualify immediately for the 0.15% fee. Cash balance accounts require cash to be placed in advance to cover any trade, while credit balance accounts allow investors to trade up to set credit lines established by their broker.

But nearly 95% of all investors who trade through normal accounts would continue to be subject to the 0.2% minimum fee until Dec 31.

Online trading currently accounts for around 10% of total trade on the SET. Normal commissions, now set at 0.25%, are scheduled to decline starting in 2010 and will be freely negotiable from 2012.
The SEC also said brokers cannot delay or use other criteria to determine incentive payouts to marketing staff.

[Whiteshiva]

[B][COLOR=white]Regulators had previously announced that online trading fees would fall to 0.15% from 0.2% starting last month.

But the Stock Exchange of Thailand and local brokers resisted the plan, saying that more time was needed for the industry to adjust to added competition, particularly in light of the sluggish market this year.

A sluggish market (let's not go into that discussion!), and we aim to protect......the brokers?