Bursa Malaysia
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| Website: Bursa Malaysia Contact: Contact Bursa Malaysia Map: Bursa Malaysia Map |
Overview:
Bursa Malaysia Bhd (Bursa Malaysia)
Bursa Malaysia Bhd (formerly known as the Kuala Lumpur Stock Exchange, KLSE) was formed on December 27, 1976 in conjunction with the Securities Industry Act, 1973. At that time the KLSE was a company limited by guarantee without share capital and incorporated under the Companies Act, 1965.
With the demutualization of the KLSE on January 5, 2004, KLSE became a public company limited by shares. Effectively, the KLSE has vested and transferred its stock exchange business to its wholly-owned subsidiary Bursa Malaysia Securities Bhd (Bursa Securities), while the demutualized KLSE has been approved as an exchange holding company known as Bursa Malaysia Bhd (Bursa Malaysia).
Bursa Malaysia Securities Bhd (Bursa Securities)
Bursa Malaysia Securities Bhd (Bursa Securities), a subsidiary of Bursa Malaysia Bhd (Bursa Malaysia), facilitates trading in securities of companies listed on the bourse. It is also responsible for market surveillance and enforcement of trading rules and listing requirements.
Securities dealing is carried out by stockbroking companies (SBCs), which are referred to as member companies of the Bursa Securities. The terms ‘member company’ and ‘SBCs’ are interchangeable.
Bursa Securities has three boards, the Main Board, Second Board and Malaysian Exchange of Securities Dealing and Automated Quotation Bhd (MESDAQ). A public company that has its shares listed on the Main and Second Board must comply with the listing requirements of Bursa Securities while the MESDAQ counters must comply with the listing requirements of MESDAQ.
LFX (Labuan International Financial Exchange)
The LFX was launched on November 23, 2000. Wholly owned by Bursa Malaysia, the LFX is a virtual global exchange that provides listing and trading facilities for a wide range of financial and non-financial products, including mutual funds, bonds, derivatives and insurance-linked products. Said to be the first of its kind in Asia, LFX is expected to boost Labuan’s position as an international offshore financial centre.
LFX is limited by shares and its’ authorized and paid up capital stands at USD5 million and USD100, 000 respectively. It is governed by the Offshore Companies Act 1990 and Labuan Offshore Securities Industry Act 1998. It is a self-regulated organization that will operate, manage, monitor and supervise its own market participants by way of its licenses, rules and regulations.
LFX promotes extensive use of multimedia and Internet facilities. Trading of LFX securities do not attract any capital gains tax, contract note duties and exit levies.
Trading on LFX is carried out via LFX’s Electronic Bulletin Board. All financial instruments available for trading are posted on the board and trading agents, who are the only people who can deal on the exchange, post their indication of interest to buy or sell on the board. Any interested trading agents will conduct their own negotiations. The trade will only be considered complete when the report of the trade by both buyer and seller is received by LFX.
Bursa Malaysia Derivatives Bhd (Bursa Derivatives)
Bursa Malaysia Derivatives Bhd (Bursa Derivatives), formerly known as MDEX, was formed when the Commodity and Monetary Exchange and Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) merged. It was launched on June 11, 2001. Bursa Derivatives is a futures and options exchange.
With effect from November 20, 2006, Bursa Malaysia migrated its derivatives products onto its new common trading system, Bursa Trade. The new system caters for faster processing and execution of more orders. It also enhances capabilities for the exchange to improve market liquidity and velocity as well as increase trading efficiency and quality of market surveillance.
Trading System
Trading on Bursa Malaysia Securities Berhad (Bursa Securities) (previously known as Kuala Lumpur Stock Exchange) is executed through stockbroking companies (SBCs). The automated trading system of the Bursa Securities comprise two major computer systems which are as follows:
* The SCORE (System on Computerised Order Routing and Execution) which is the central computer engine responsible for the matching of all trades
* The WinSCORE system (broker front end trading system) which is responsible for credit control management, order and trade routing as well as confirmation
All SBC’s are equipped with the WinSCORE system. The WinSCORE terminals are linked with the SCORE system to enable dealers to key in orders themselves and not through a central buyer. This allows a more timely execution of clients’ orders and a reduction of risk exposure for the dealers and the broking firms.
A subsidiary company of the Exchange, Bursa Malaysia Securities Clearing Sdn Bhd (Bursa Clearing ‘S’), (previously Securities Clearing Automated Network Services Sdn Bhd, SCANS), effects the clearing and settlement of all business done through SCORE. This provides for efficiency in terms of delivery of stocks and shares and settlement of accounts for the investing public and members of the Exchange.
| Equity Financial Futures (SSFs/FKLI/OKLI) | Non-Equity Financial Futures (FKB3/FMG3/FKG5/FMGA) | Commodity Futures | |
| Pre Opening | 8:15 am | 8:30 am | 10:00 am |
| Opening Auction | 8:45 am | 9:00 am | 10:30 am |
| Continuous Trading | 8:45 am | 9:00 am | 10:30 am |
| Pre Closing | 12:40 pm | 12:25 pm | 12:25 pm |
| Closing Auction | 12:45 pm | 12:30 pm | 12:30 pm |
| Pre Opening | 2:00 pm | 2:00 pm | 2:30 pm |
| Opening Auction | 2:30 pm | 2:30 pm | 3:00 pm |
| Continuous Trading | 2:30 pm | 2:30 pm | 3:00 pm |
| Pre Closing | 5:10 pm | 4:55 pm | 5:55 pm (FCPO) 6:00 pm (FPKO) |
| Closing Auction | 5:15 pm | 5:00 pm | 6:00 pm (FCPO) 6:05 pm (FPKO) |
OTC Market (not available for on-exchange listed securities)
Monday to Friday: 09:00 – 18:00
Pre-opening
Orders can be submitted, modified or cancelled. The system will broadcast a dynamically calculated price called the Theoretical Opening Price (TOP).
Sample Order Book
| Broker | Time | Volume | Price | Price | Volume | Time | Broker |
| 1 | 09:35 | 2,000 | MOO | $31.90 | 2,000 | 09:31 | 9 |
| 2 | 09:30 | 1,000 | $32.00 | $31.90 | 8,000 | 09:40 | 10 |
| 3 | 09:41 | 8,000 | $32.00 | $32.00 | 10,000 | 09:35 | 11 |
| 4 | 09:32 | 6,000 | $31.90 | $32.00 | 4,000 |
09:43 |
12 |
| 5 | 09:40 | 3,000 | $31.90 | $32.00 | 2,000 | 09:44 | 13 |
| 6 | 09:44 | 2,000 | $31.90 | $32.10 | 6,000 | 09:42 | 14 |
| 7 | 09:43 | 2,000 | $31.80 | $32.10 | 2,000 | 09:43 | 15 |
| 8 | 09:41 | 1,000 | $31.70 | $32.20 | 4,000 | 09:31 | 16 |
| $32.20 | 2,000 | 09:38 | 17 |
Orders are sorted by matching priority
Opening Auction
No new orders or changes to existing orders are allowed. The opening price and the matched instrument volume are broadcast. The system moves immediately from the Opening Auction phase into the Continuous Trading phase. If there are no trade matched in the opening auction period the opening price will be deemed the first traded price in the continuous trading session.
Determining the Theoretical Opening Price (TOP)
| Possible TOP | Total Bids | Total Asks | Matched Shares |
| $32.00 | 11,000 | 26,000 | 11,000 |
| $31.90 | 22,000 | 10,000 | 10,000 |
The Theoretical Opening Price (TOP) is $32.00 as the most shares can be traded at that price
Continuous Trading
New orders can be entered and existing orders can be modified or cancelled. Each order is checked to see if can be executed immediately where unexecuted parts of an order are added to the order book depending on execution condition or validity. Matching is done on a price and the time priority.
Pre Closing
Orders can be submitted, modified or cancelled and starts immediately after the Continuous Trading session. All orders sent are automatically added to the order book without any executions taking place. The system will broadcast a dynamically calculated price called the Theoretical Opening Price (TOP).
Closing Auction
No new orders or changes to existing orders are allowed. Matched instrument volumes are broadcast. The Closing Price for each instrument is reached at this phase. If there are no executions during the Closing Auction the last traded price in the Contunous Session will be taken as the Closing Price.
Order Types
Limit Order
These orders have both a limit price and quantity and are available in both the Pre-opening and Continuous Trading Session. Available order validity include Day, Good till cancelled (GTC) or Good till date (GTD) and will remain on the order book until filled or expired
Combination Orders
Used in option or futures trading and involves the simultatneous trading of 2 or more option or futures contracts with the same underlying asset.
Stop Loss Orders
These orders are entered with a trigger price which triggers an order. The order is entered as a FAK Market Order (See Below)
Market On Opening (MOO) Order
This order type is only available during the Pre-opening session and is a priceless order that is executed at the Theoretical Opening Price (TOP). It is given priority over limit orders. In the event that the entire order isn’t executed it will be entered into the Order Book at the TOP price during the Continuous Trading Phase.
| Broker | Time | Volume | Price | Price | Volume | Time | Broker |
| 1 | 09:35 | 2,000 | $32.10 | MOO | 3,000 | 09:31 | 9 |
| 2 | 09:30 | 1,000 | $32.00 |
Assume TOP is calculated to be $32 then the seller will sell all 3,000 shares at $32.00 and the buyer at $32.10 will buy her 2,000 shares at $32 as well; at a better price and at the TOP.
A partially matched MOO order
| Broker | Time | Volume | Price | Price | Volume | Time | Broker |
| 1 | 09:35 | 2,500 | MOO | $31.90 | 1,000 | 09:31 | 9 |
| $32.00 | 1,000 | 09:36 | 10 |
Assume TOP is calculated to be $32 then the buyer will only be able to buy 2,000 shares at $32.00. The remaining 500 shares will be entered in the Order Book in the Continuous Trading Session at $32.00
Market To Limit (MTL) Order
An order that is entered without a price where it becomes a limit order at the best prevailing market price. This order can only be entered into the Continuous Trading System. Any remaining unexecuted part of the order will be active at the limit price in the Order Book. If there are no orders to fill an MTL order it will be rejected.
| Broker | Time | Volume | Price | Price | Volume | Time | Broker |
| 1 | 09:35 | 2,000 | $32.10 | MTL | 1,000 | 09:31 | 9 |
| 2 | 09:30 | 1,000 | $32.00 |
The Market to Limit Order would be executed at $32.10.
A partially matched MTL order
| Broker | Time | Volume | Price | Price | Volume | Time | Broker |
| 1 | 09:35 | 2,500 | MTL | $31.90 | 1,000 | 09:31 | 9 |
| $32.00 | 1,000 | 9:36 | 10 |
1000 shares would be executed at $31.90 and the remaining MTL order would become a t limit order to buy 1,500 shares at $31.90.
Stop Limit Order
Generally used as a protection or risk mitigator these orders are executed at a specified price (limit) when a certain price (trigger) threshold is met. Therefore, these orders require two prices, the trigger price which activates the order and the limit price where the order will be filled. Limit Prices are either equal to or lower than the trigger price. For buy orders the limit price will be equal to or higher than the Trigger Price.
For example Buy 1000 shares of XYZ if the market price reaches $50 (trigger price) and use a limit price of $52
| Broker | Type | Volume | Price | Price | Volume | Type | Broker |
| 1 | Limit | 1,000 | $52 | $50.00 | 100 | Limit | 9 |
| $51.00 | 500 | Limit | 10 | ||||
| $52.00 | 500 | Limit | 9 |
The buyer will buy 100 @ $50, 500 @ $51 and the remaining 400 @ $52. The limit price is the worst possible price he is willing to pay.
FAK Market (FAK_MO) Orders
These orders are executed at the best prevailing price at the time of entry. Any remaining amount of the order is cancelled. Only order quantity is needed for this order type during the Continuos Trading session. Trade Validity infomration such as Day, Good till cancelled (GTC) or Good till date (GTD) must not be given with the FAK Market Order. There is, however, no guaranteed executed trade price and can be submitted in both the Pre-Opening and Continuous trading phases.
Security Identifiers
ISIN: ISIN is the standard securities identifier for all Bursa Securities listed securities and SSTS eligible instruments For all other unlisted and delisted securities, only the subcustodian’s internally assigned security code is available as the securities identifier.
Other: None
Instruments
Equities: Shares, ordinary shares, preference shares, participating preference shares, cumulative preference shares, redeemable preference shares, convertible preference shares, founders’ shares or management shares, property trust units, transferable subscription rights/warrants.
Debt: Bonds (straight, fixed and non-convertible), promissory notes, Malaysian government securities, debentures, loan stock, subordinated loan notes.
Money Market: Treasury bills, bankers acceptances, negotiable CDs, trade bills, government-issued investment certificates, floating rate negotiable CDs, revolving underwriting facility, notes issuance facility.
Other: Real Estate Investment Trust (REIT) and Exchange Traded Funds (ETF)
Equities: Shares quoted on the Bursa Securities are traded in quantums of 100 units, per board lot.
Odd lots are traded on the "odd lot" board or transacted by private negotiation through a direct business transaction.
Debt: No set board lots, however trades are usually contracted in multiples of MYR 5 million. Debt instruments listed on the Bursa Securities are traded in standard board lots of 100 units each.
