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.