Regulatory
Measures
Soft Enforcement
Soft enforcement is an approach used to address irregular trading concerns through engagement
with Participating Organisations ("POs").
Objectives of soft enforcement:
To address any material trading irregularities promptly
To nurture an understanding among POs of Bursa Malaysia's expectation in
relation to trading best practices which include desired standards of conduct of their
dealers
To instil a self-regulation culture among POs
To ensure POs are aware that irregular trading activities are being monitored
by Bursa Malaysia
Bursa Malaysia’s expectation on POs post soft enforcement include:
POs to immediately carry out investigation into possible irregularities
Cease trading misconduct
Unusual Market Activities Query
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
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:
To take note of the recent developments of the listed company
To exercise caution and due diligence on the trading of the affected securities
To guide their investment decisions based on fundamentals of the listed
company
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.
Designation
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.
