Bursa Malaysia Enhances Trading System By Introducing New Order And Validity Types

06/07/2012

Bursa Malaysia has made enhancements to its trading system through the introduction of new order and validity types, allowing market participants to execute a greater variety of trading and risk management strategies. The enhancements form part of the initiatives undertaken by the Exchange to improve the market’s framework and efficiency.

With the new enhancements, brokers will be able to utilise new order and validity types such as Market to Limit order, Fill and Kill, and minimum quantity, when keying in orders. Previously, the trading system can only support two types of orders, namely market order and limit order.

Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia, said, “As an exchange operator, Bursa Malaysia aims to provide an efficient and seamless market framework for its participants. The enhancements to the Bursa Trade System (BTS) will enable market participants to leverage on a variety of trading strategies according to their investment needs.”

“The introduction of these new features is timely in view of the growing sophistication of the Malaysian market, and supports our vision to transform Bursa Malaysia to be Asia’s leading marketplace.”

The Market to Limit order allows orders to be matched at the current market price, and set a price limit for the remaining orders to ensure that all orders are matched at the same price. The Fill and Kill validity allows orders that are not matched at the desired price to be deleted from the order book, while the minimum quantity validity allows order to be matched only if it fulfills the minimum quantity criteria.