Bursa Malaysia has introduced new functionality on its derivatives market that will allow its members to trade block-sized orders.
The bourse’s new negotiated large trade facility is intended to allow large trades to be executed at a single price, thereby minimising market impact cost and increasing certainty of execution.
The facility will be available for instruments including KLCI index futures, crude palm oil futures, the three-month KLIBOR futures and the five-year MGS futures contracts.
The service allows trading members of the exchange to negotiate trades directly and privately away from the main trading system on behalf of their clients. After completion, the trades are reported to the exchange for clearing and trade details are the announced to the rest of the market.