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FinTechs belonging to this category operate trading platforms or online marketplaces for investment opportunities or certain financial contracts – e.g. securities, factoring etc. and sometimes furthermore provide contact to financial experts and tools for the decision-making.
FinTech-signalling and social trading platforms provide users with the opportunity to exchange opinions on financial investments and offer signal providers and traders the possibility to make their securities portfolio publicly visible. This way the portfolios can be linked to and followed by other traders via the platform automatically, so that the trading and investment strategy of the followed traders can be copied.
The platform often cooperates with a financial services provider or a credit institution where both the trader and the follower hold their securities accounts, and which execute the orders both of the trader and the follower and to which the platform passes on the trading decisions.
Introduction
Attitude of the country towards trading, social trading or signalling platforms
The Securities and Exchange Act B.E. 2535 (1992) prescribes that only the Stock Exchange of Thailand is allowed to engage in the business of securities exchange. However, the act does allow the operation of over-the-counter centres that have been licensed as such by the SEC. Providing an electronic trading platform (ETP) service could be deemed conducting a securities exchange business, an over-the-counter centre, or a similar business, depending on the transactions and the arrangement of the platform.
Recently, the SEC issued the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018), which is the main regulation in Thailand governing digital assets businesses, including exchanges for digital tokens and crypto currency. Under this decree, digital asset exchanges must obtain a license from the SEC prior to operating in Thailand. The SEC also attempts to impose a licensing requirement on overseas exchange platforms.
Legal affairs
Obligations and requirements to provide trading, social trading or signalling platforms described above
The Stock Exchange of Thailand (SET) provides a real-time trading platform called “Streaming” for investors to trade stocks, futures, and options. This platform enables investors to trade in both equity and derivatives markets using a single application, and to track the movement of the markets and obtain real-time quotes for respective stocks. The application also provides fundamental information on capital markets and stocks, as well as analysis from various brokerage firms.
Trading platform services for stocks, mutual funds, derivatives, and securities generally must be approved or licensed by the SEC. The type and cost for a license, including an annual fee, varies according to the nature of the business.
It is still uncertain how the SEC will regulate financial products with underlying digital assets, such as derivatives backed up by digital assets, or digitised securities. Currently, there are no regulations from the SEC on this matter, but in practice, the SEC has an internal policy of prohibiting digital asset business operators in Thailand from offering financial products with underlying digital assets, either as a facilitator or by directly providing these financial products.
The type and cost of the license for digital asset related businesses, including the annual fee, varies according to the nature of the business.
Additional comments regarding the legal situation for trading, social trading or signalling platforms or what FinTech’s must be aware of in this business area
Since COVID-19, the market for trading platforms in Thailand has been quite competitive, and Thai m