LAUNCH OF BURSA MALAYSIA'S NEW TRADING SYSTEM ON MONDAY, 1 DECEMBER 2008

We wish to inform you that Bursa Malaysia has planned to go live with a new trading system on Monday, 1 December 2008.  This new system, Bursa Trade (BT) Securities, will replace the existing SCORE system.

Under the new BT system, some of the major changes are:

1)      New Trading Phase - Morning session starts at 8.30am to 12.30 pm & Afternoon session starts at 2pm to 5.00pm.

·            Pre-Opening

o      At the pre-opening (8.30am to 9.00am and 2.00pm to 2.30pm), you will be able to preview the market with the Theoretical Opening Price.

·            Pre-Closing

o      At the pre-closing (12.15pm -12.20 pm and 4.45pm - 4.50pm), orders can be entered but there will be no matching of trades.

o      At the "Trading At Last" phase (12.20pm - 12.30pm and 4.50pm - 5.00pm), orders can only be entered and matched at the Theoretical Closing Price.  During this session, you can only trade with one price.  The system will reject all other orders entered with other prices.

o      The Theoretical Closing Price is to promote natural discovery of closing prices; thus mitigating price manipulation at close of market.

2)      You will be able to see five best price limits for a stock as compared to only three previously.

For further details on Bursa Trade (BT) Securities system, please check out the following links:

http://www.bursatrade.com

http://www.bursamalaysia.com/website/bm/tr...ursa_trade.html

The PDF file inside (the bursa website) already got the details explanation.

Basically, it will look for the best price which bulk or most transaction can be taken place.

As far as I knew and understand on the new system.

No. It will not be matched.
The last 10 minutes, all transaction will only be done at the Theorectical closing price, which being determined by buy/sell order that key into or received by system.
It is same with opening price.

The Theorectical open and closing price work like this, (simple illutration)

The system has all the orders and total it up. Let say abc stock

buy order at
1.00 got 100,000 lots
0.99 got 120,000 lots
0.98 got 20,000 lots
0.97 got 50,000 lots

While sell order at
1.00 got 10,000 lots
0.99 got 50,000 lots
0.98, got 10,00 lots
0.97 got 30,000 lots

So the theorectical price will be set at 0.99, whereby the most possible transaction that can be carried out ie 50,000.

KLCI stocks to be reduced to 30

URL: http://biz.thestar.com.my/news/story.asp?f...99&sec=business