Bursa Malaysia adds new order options
Bursa Malaysia has added new order types to its trading
system, allowing market participants to expand the range of strategies they can
use on the bourse.
With the additions, brokers can now use market-to-limit orders, fill and kill orders and also have the ability to apply minimum
quantity thresholds to their trades. Previously, the trading system could only support two types of orders
– the market order and the limit order.
The market-to-limit strategy allows orders to be matched at the
current market price and sets a price limit for the remaining orders so they are matched at the same price. Using the fill and kill order type, trades that are not matched at the desired price are automatically deleted from the order
book, while the minimum quantity functionality will ensure orders are only matched if they are above a certain size.
“The enhancements to the Bursa Trade System will enable
market participants to leverage a variety of trading strategies according to
their investment needs,” said Dato’ Tajuddin Atan, CEO of Bursa Malaysia. “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.”
Malaysia’s derivatives market was recently identified
by research firm TABB Group for its potential for significant expansion as
access and liquidity improves. The country’s strong economic growth has helped
drive the expansion of the market.