Market Surveillance
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
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.