SEC to Launch Securities Bureau by Early 2026 to Strengthen Market Oversight
The Securities and Exchange Commission (SEC) is set to launch the Securities Data Exchange Platform, commonly known as the Securities Bureau, by early 2026. This centralized database aims to strengthen risk management in Thailand’s brokerage system following the More Return (MORE) scandal.
Key Takeaways
- SEC’s Securities Bureau will serve as a centralized margin loan database
- Pilot testing begins next month, full implementation by Q1 2026
- System addresses structural weaknesses exposed by MORE scandal
- New leverage cap reduced from 5x to 4x shareholders’ equity
Addressing Systemic Risks
Anek Yooyuen, the SEC’s deputy secretary-general and spokesperson, stated the Securities Bureau will enable securities companies to access shared client data for better credit risk assessment before extending margin loans. “The approach is similar to how commercial banks use information from the Credit Bureau to evaluate borrowers’ creditworthiness,” he explained.
Response to MORE Scandal
The initiative directly responds to severe market disruptions caused by the MORE case, where a single investor obtained margin loans from multiple brokers to purchase MORE shares but failed to settle payments. The incident resulted in several brokers absorbing losses exceeding 1 billion baht and exposed critical flaws in market oversight.
Mr Anek emphasized that the bureau will provide a data-sharing channel among securities firms, allowing them to cross-check clients’ trading credit exposure and minimize default risks. However, he noted the platform’s effectiveness will depend heavily on brokers’ cooperation in submitting accurate and timely data.
Regulatory Overhaul
Complementing the new system, the SEC is revising regulations governing how brokers determine and review clients’ credit limits. Firms must now verify and exchange essential client information before approving or renewing margin credit lines, ensuring lending levels align with repayment capacity.
The regulator is also tightening short-selling and margin lending rules. Under the revised framework, brokers may accept short-sell orders only after verifying the source of borrowed securities complies with SEC guidelines.
Leverage Limits Reduced
The margin lending framework is being adjusted by lowering the leverage cap from five times shareholders’ equity to four times, creating a more prudent risk structure across brokerage firms.
Legacy of MORE Scandal
The push for reform follows lessons from the MORE scandal, one of Thailand’s most significant market manipulation cases. The scandal involved 4.5 billion baht worth of MORE shares traded in a single day, with the buyer’s failure to settle exposing critical flaws in clearing and settlement processes.
The incident severely shook investor confidence and demonstrated how single misconduct cases could ripple across the entire market ecosystem. Despite its short-term impact, the MORE case became a turning point for Thailand’s capital market, accelerating systemic reforms and enhancing transparency.
