Published On: Tue, Apr 12th, 2011

Bursa Malaysia To Implement Day Order For Increased Efficiency

Bursa Malaysia Berhad will implement validity-of-order throughout the day via Day Order effective 18 April 2011, replacing the current Session Order. This change is made for increased efficiency and to meet market expectations.

Currently all orders entered into the trading system is valid for a single session only as all unmatched orders are cancelled by Bursa Malaysia immediately after the end of the morning session. Thereafter, brokers are required to re-key in their orders in the afternoon session at 2:00pm when the market re-opens for the Pre-Opening phase.

With the implementation of Day Order, all unmatched orders from the morning session will be automatically carried forward to the afternoon session and shall be considered as valid for the whole trading day. Brokers are only required to manually cancel the orders after 2:00pm if they do not wish to carry the orders into the afternoon session.

There will be no change to the current trading hours.

The benefits of the implementation of Day Order include:

1. Operation efficiency
Brokers do not have to re-key unmatched first session orders at 2:00pm onwards as the orders will remain in the trading system. This will avoid instances of brokers’ oversight in carrying forward clients’ unmatched orders from the morning session. As a result, there will be less system processes for both the Exchange and the brokers, especially for remisiers and dealers.

2. Order priority
Orders that have been placed in the morning session will automatically be carried over into the next trading session. Therefore, there will be no loss of orders priority.

In line with the implementation of Day Order, a single trading limit shall be applied for the whole trading day. The single trading limit will be at 30% or 30 sen

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