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Thursday, June 13, 2024

SET: Rules bar Thai GameStop

A GameStop store is pictured in the Manhattan borough of New York City, New York, US. REUTERS

The Thai stock market is unlikely to encounter a similar situation to the market frenzy around GameStop (GME) shares thanks to regulators’ tighter grip on market volatility, says Pakorn Peetathawatchai, the president of the Stock Exchange of Thailand (SET).

GameStop, the US video game retailer, saw shares rise to stratospheric levels after retail investors flocked to buy the company’s shares and stock options to spite hedge fund managers, who had long been shorting the shares.

The price surges incited a short squeeze — the phenomenon where investors who short sell are forced to close their positions before the option ends in fear of losing more money, which in effect drives the price even higher.

The…

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