Soft enforcement is an approach used to address irregular trading concerns through engagement with Participating Organisations ("POs").
Objectives of soft enforcement:
Bursa Malaysia's expectation on POs post soft enforcement include:
Unusual Market Activities refers to any abnormal trading activities involving substantial price change, and/or volume movement, arising from the trading of an individual stock or its derivatives during any market session.
It is the obligation of listed companies to make an immediate announcement to clarify the above scenario pursuant to the Bursa Malaysia Listing Requirements.
In addition to listed companies' own initiative, Bursa Malaysia will also initiate an Unusual Market Activities query upon detection of any irregular price and/or volume movement.
When an Unusual Market Activities query is initiated, the affected listed company must immediately make an announcement to clarify the cause of unusual market activities in the trading of its securities after making due enquiry.
Investors are advised to take note of the Unusual Market Activities query and the listed issuer's response when making their investment decisions.
Market Alert is an alert initiated to caution the investing public on the possible irregular trading activities of a particular security. The Market Alert is published via media release and Listing Circular.
Market Alert serves to alert investors:
It also assures investors that Bursa Malaysia will not hesitate to take appropriate regulatory action on the trading of the securities to ensure a fair and orderly market.
The trading of the securities will be declared as "Designated Securities" upon occurrence of a situation of excessive speculation as well as the existence of abnormal trading patterns. The decision to designate a securities also takes into account the interest of ensuring a fair and orderly market for the trading the affected securities.
With the designation, trading in the securities continues but will require payment upfront before buying and a free balance of securities before selling.