Bursa M’sia revises two frameworks to improve market liquidity

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KUALA LUMPUR: Bursa Malaysia Bhd yesterday shared details of the revised Tick Rule on Regulated Short Selling (RSS) and the Securities Borrowing and Lending – Negotiated Transactions (SBL-NT) Failed Trade Proposal framework on its website to further facilitate market development.

In a statement, the stock exchange operator said the revised Tick Rule would allow RSS orders to be executed at the best current asking price or higher, thus providing greater price flexibility.

Under the SBL-NT Failed Trade Proposal’s new framework, investors were now allowed to borrow securities for the settlement of potential failed trades rather than be subjected to the buying-in process.

Bursa Malaysia chief executive officer Datuk Seri Tajuddin Atan said the revisions would improve market liquidity, provide improved flexibility to market participants in mitigating the risk of settlement failure and reduce transaction costs of trading on the exchange.

“There is clear indication of market interest in Bursa Malaysia’s RSS and SBL.

The total SBL size stood at RM4.9 billion as at end-January.

“We anticipate that participation will continue to grow as the exchange further enhances Bursa Malaysia’s RSS and SBL facilities to be in line with developed markets,” he added. — Bernama