Bursa Malaysia implements intraday short selling

KUALA LUMPUR: Now, everyone can short sell their shares on Bursa Malaysia.

Bursa Malaysia Bhd , the stock exchange operator, today said it had implemented the intraday short selling (IDSS) framewok for all investors in a bid to boost liquidity in the local bourse.

“The exchange will continue to undertake initiatives to provide a more efficient and facilitative market framework and the introduction of IDSS is set to further advance the exchange’s efforts to build a dynamic and vibrant capital market.” its CEO Datuk Seri Tajuddin Atan said in a statement.

Currently, the list of approved stocks for short selling comprises of 280 securities. The list will be reviewed every six months.

“Introducing IDSS to a wider group of investors is timely considering the growing sophistication of market participants. This measure is part of the exchange’s strategy to boost market liquidity and further improves flexibility for market participants to refine their trading and risk management strategies,” Tajuddin said.

A robust compliance requirement and safeguards have also been put in place to allow for IDSS trades to take place.

This includes market controls for IDSS suspensions if a stock price falls by more than 15% from the previous day closing price or if the gross short selling volume exceeds the daily maximum limit of 3% of outstanding shares per security.

The framework also specifies compliance obligation requirements for investors before IDSS activities can commence.

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