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Bursa Malaysia has decided to remove two features – pre-closing and trading-at-last – from the morning session with effect from Oct 26.

Their removal would result in an additional 15 minutes of continuous trading, the exchange operator said in a statement. However, Bursa said these two features would be retained for the afternoon session.

The pre-closing phase was intended to mitigate price manipulation and was especially suited for the end of a trading day, it said.

The trading-at-last, which comprises the last 10 minutes of a trading day, will provide traders with the opportunity to trade at the closing price of a stock.

“This improvement is made in consultation with market participants who echoed their support in making trading experience seamless and opportunities continuous for investors.

“Our priority is to facilitate a trading platform that gives accessibility in trading while maintaining price transparency and efficiency,” Bursa chief executive officer Datuk Yusli Mohamed Yusoff said in a statement.

Related Posts:

• Theoretical Opening Price and Theoretical Closing Price
• Bursa New Trading System – Part 2
• Broker Trade Securities Update
• Bursa New Trading System and its Benefits to You – Part 1

It has been a week since Broker Trade Securities (BTS) has gone live. Pro Trade Shares has received very little feedback with regards to Bursa Malayasia new trading system.

Some brokers experience inability when they try to sell to buy-in early in the morning on the first day, 1st December 2008. Thereafter the system seems to work fine. We are still trying to get a snap shot of the BTS for you guys.

In the meantime, this being the year end and all, we at protradeshares has been on holiday. So are the remisiers that has been giving us feedback. We would probably get more information on how BTS perform in January 2009.

This might be our last posting for 2008. So……

Merry Christmas, Happy New Year and Happy Holidays if we don’t post anymore for this month.

Related Posts:

• Bursa New Trading System – Part 2
• Bursa Trade Securities (BTS) Live!
• Bursa Trade Securities Website
• Theoretical Opening Price and Theoretical Closing Price
• Bursa New Trading System and its Benefits to You – Part 1

In our last post about Bursa new trading system called BTS or Bursa Trade Securities, we informed that there are much more transparent methods of calculating the opening and closing price. Today we will look at what it means.

There are two trading session per day.

(a) Morning trading session

8.30am to 9.00am – pre opening
9.00am – opening
9.00am to 12.15pm – continuous trading
12.15am to 12.20pm – pre closing
12.20pm – closing
12.20pm to 12.30pm – trading at last

Bursa Morning Trading Session

(b) Afternoon trading session

2.00pm to 2.30pm – pre opening
2.30pm – opening
2.30pm to 4.45pm – continuous trading
4.45pm to 4.50pm – pre closing
4.50pm – closing
4.50pm to 5.00pm – trading at last

Bursa Afternoon Trading Session

As you can see from the above there are TWO pre-opening and TWO pre-closing period.  During these period, the BTS system will find the best opening or closing price based on a set of algorithm. During these two periods there will not be any matching done. Dealer’s representative can only input their buy or sell order during these two periods.

Once the opening price has been decided, that will be the Opening price. Same goes with the closing price. However there is a difference for the closing price. You will notice that there is period called Trading-At-Last for both the morning and afternoon session. During Trading-At-Last period there will not be any movement of the price. The price is fixed at the closing price and customers can be sure that he/she will get the same price as the closing price during this period. This period is also for institutional clients to close their position at a fixed price rather the current trading system whereby someone can manipulate the price by keying a market buy or sell to change the closing price up or down drastically.

In the next Pro Trade Shares posting, we will explain the algorithm involved in the deciding the matching price in BTS.

Related Posts:

• Theoretical Opening Price and Theoretical Closing Price
• Broker Trade Securities Update
• Changes to Bursa Pre-closing and Trading-at-last
• Bursa Trade Securities (BTS) Live!
• Bursa Trade Securities Website