Trade Shares or Stocks in Bursa Malaysia|How to start Trading | Trade Stocks in Bursa Malaysia | How to Open Trading Account | How to Open CDS Account | What is Collateralised Trading | Discretionary Financing | Share Margin Financing | CDS Share Transfer | Securities Borrowing and Lending (SBL) | Regulated Short Selling (RSS) | Brokerage | Internet Trading Brokerage Discount | Cash Upfront Brokerage Discount | Clearing Fees | Contract Stamp Duties | Bursa Malaysia | Composite Index | Bursa News | Listed Companies News | Market News | Market Outlook

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

In our last posting we explained the morning and afternoon trading sessions. We also mentioned the new session called Pre-Opening and Pre-Closing. Bursa new trading system will use these pre-opening and pre-closing session to calculate the Theoretical Opening Price (TOP) and Theoretical Closing Price (TCP). This is Part 3 of our introduction to Bursa New Trading System.

Part 1 was Bursa New System difference with the old system
Part 2 was about the Bursa New System Trading Session

What is the Theoretical Opening Price ?

According to Bursa defination; “The Theoretical Opening Price or TOP is the price at which the share would trade if it opens at the moment the price is calculated. TOP is calculated on a real-time basis on Pre-Opening Phase. With TOP, investores can get a better understanding of market demand and supply conditions to better plan their investment strategies.”

Basically a Dealer’s representative (Remisier or Dealer) can view via their new Bursa Trade Securities (BTS) system the TOP after the pre-opening phase. Most of us investors would not have privy to it. We have to call our remisier or dealer to check the TOP. So far we don’t have any idea how the TOP is decided but it is based on all the buy and sell order keyed-in during the pre-opening phase.

What is the Theoretical Closing Price ?

The Theoretical Closing Price is the price at which a share would trade if it stops trading at the moment the price is calculated. TCP is calculated on a real-time basis in Pre-Closing/Closing phase. As the TCP is locked in at the Trading at Last and Closing, it allows the investor to gauge the price to be traded at the Opening as well as to plan ahead with greater clarity.

During the Trading at Last phase, you can ony input buy or sell order at the price of the TOP. Therefore the price will not suddendly move up or down just before the close.

We will try to find out how the TOP and TCP are calculated and post it here in the future.

In the next posting we will show example on how trade are matched in Bursa Trade Securities System.

Related Posts:

• Bursa New Trading System – Part 2
• Changes to Bursa Pre-closing and Trading-at-last
• Broker Trade Securities Update
• Bursa Trade Securities (BTS) Live!
• Bursa Trade Securities Website