KUALA LUMPUR: Malaysia's stock exchange has introduced new and revised trade execution options for investors to promote a more profitable and sustainable trading in the equities market.
Bursa Malaysia Bhd
said on Tuesday the options would enable investors to navigate more efficiently through the equity market environment.
The newly expanded trading features are:
• Market order at pre-closing. This option allows investors to key-in market orders during pre-closing auction session.
• On-open order. Investors to place an order that will be executed at the day’s opening price.
Bursa Malaysia explained this was often used based on events that has happened after the market has closed on the previous trading day that is expected to affect the stock’s opening price on the following trading day.
• On-close order. This option allows investors to buy or sell shares at the closing price which will be executed at or just after closing at the end of the trading day.
• Iceberg order. Investors can make conditional requests to buy or sell a large quantity of shares but in smaller pre-determined quantities.
This kind of order is typically used by large or institutional investors to avoid sudden movement in the market caused by large orders.
• One-cancel-other (OCO) order. A set of two orders whereby matching of one order will result in the cancellation of the other order. This is usually used by traders to mitigate risk and to enter the market.
Bursa Malaysia CEO Datuk Seri Tajuddin Atan said the new and revised trade execution options were expected to enhance investors' trading strategies and help promote a more profitable and sustainable trading in the equities market.
“Looking forward, the Exchange will continue to provide investors greater choice and more efficient means to implement their trading ideas that will allow them to better manage risk and capture new opportunities in the market,” he said.
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