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Thai regulators urged to end risky trading tactic


ASL Securities executive chairman Chanchai Kultavarakorn is urging Thai market regulators to consider cancelling cash account stock trading, a method he says often creates artificial trading and exposes brokers to distorted share prices. This call comes after significant fraud cases involving More Return Plc and Stark Corporation Plc harmed many retail investors and led to a substantial decrease in speculative trading on the Thai bourse. Chanchai notes that brokers have had to pay for unpaid purchase orders on behalf of clients due to the existing system, where investors place orders exceeding the cash in their accounts, sometimes leveraging up to 10 times the cash amount. He suggests that regulators should only allow cash balance accounts.

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