Bursa
Trade
Bursa Trade is Bursa Malaysia's trading system. It offers greater accessibility, as well as
enhanced trading efficiency and transparency in the market. By leveraging on technological
innovations, Bursa Trade has numerous features and functions for investors.
Some of the key features of Bursa Trade:
Theoretical Opening Price (TOP)
Investors will be able to have ‘viewing ability’ of the theoretical opening prices for each
stock under the pre-opening phase from 8:30am until the market opens for trading at 9am, as well as
in the second session. The pre-opening price process enables real-time calculation of stock prices
for first matching at opening phase. This allows investors to gauge market sentiment and prices
better as the pre-opening period is made transparent. This is particularly useful for new
listings.
Theoretical Closing Price (TCP)
This transparency of trading extends to the moment the market is about to end for both the first
and second trading sessions. The theoretical closing price feature promotes natural discovery of
closing prices for each session.
Trading At Last (TAL)
The last 10 minutes of each session will provide traders with the opportunity to close their
positions. Matching will take place at a fixed price which will be either the last done price or
the theoretical closing price.
Continuous Trading
Bursa Trade Securities enables real-time and continuous matching of orders compared to 10
seconds matching under the current system. This makes the online trading experience faster and much
more responsive.
Five Best Price Limits
Investors would find this feature beneficial as it provides them with a clearer picture of
market depth. The five-best price limits give investors more control of their trading decisions as
opposed to the three-best price limits that is offered by the current system.
Odd Lots Matching
Investors will now be able to do partial matching for odd lots which makes it more marketable.
Odd lots can be partially matched based on price time priority.
Final Settlement Price for FKLI and OKLI
The implementation of Bursa Trade Securities will also have an impact on the derivatives market.
There will be a change in the calculation of the Final Settlement Price (FSP) methodology for the
derivatives products carrying the Kuala Lumpur Composite Index (KLCI) as the underlying instrument.
The products affected will be the KLCI futures (FKLI) and the KLCI options (OKLI). This new
methodology makes it less susceptible to market manipulation and smoothens out price
volatility.
