Bursa M’sia revises two frameworks to improve market liquidity

KUALA LUMPUR: Bursa Malaysia Bhd yesterday shared details of the revised Tick Rule on Regulated Short Sel l ing ( RSS) and the Securities Borrowing and Lending - Negotiated Transactions (SBL-NT) Failed Trade Proposal framework on its website to further facilitate market development.

In a statement, the stock exchange operator said the revised Tick Rule would al low RSS orders to be executed at the best current asking price or higher, thus providing greater price f lexibility.

Under the SBL-NT Failed Trade Propos a l’s new framework, investors were now al lowed to borrow securities for the settlement of potential fai led trades rather than be subjected to the buying-in process.

Bursa Malaysia chief execut ive off icer Datuk Seri Tajuddin Atan said the revisions would improve market liquidity, provide improved flexibility to market participants in mitigating the risk of settlement failure and reduce transaction costs of trading on the exchange.

“There is clear indication of market interest in Bursa Malaysia’s RSS and SBL.

The total SBL size stood at RM4.9 billion as at endJanuary.

“We ant ic ipat e that participation will continue to grow as the exchange further enhances Bursa Malaysia’s RSS and SBL facilities to be in line with developed markets,” he added. — Bernama