Securities trading - Malaysia
Key market-tradable securities
|Place of settlement||Form|
|Bursa Securities-listed instruments:|
|Corporate listed bonds|
|Exchange Traded Funds (ETF)|
|Real-Estate Investment Trusts (REITs)|
|MYR||-||-||Usually semi-annual||Bursa Depository||Immobilised|
|Warrants/TSRs (Transferable Subscription Rights)|
|SSDS-eligible securities - unlisted instruments: a|
|Government bonds and securities|
|MYR||3 to 21 years||Usually fixed||Semi-annual|
|Central Bank (BNM)||Dematerialised|
|Cagamas bonds b|
|MYR||18 months to 7 years||Fixed or floating||Quarterly, semi-annual or annual||Central Bank (BNM)||Dematerialised|
|Cagamas notes b|
|MYR||1 to 12 months||Discounted||-||Central Bank (BNM)||Dematerialised|
|Private debt securities (corporate unlisted bonds etc.)|
|MYR||Various||Various||Quarterly, semi-annual or annual||Central Bank (BNM)||Dematerialised|
|MYR||Up to 1 year||Discounted||-||Central Bank (BNM)||Dematerialised|
a. Additional information about SSDS-eligible securities can be found on rmbond.bnm.gov.my .
b. Cagamas bonds and notes are mortgage-backed securities issued by Cagamas Berhad, the Malaysian National Mortgage Corporation ( www.cagamas.com.my ).
Bursa Securities provides a recognised automated trading platform for listed Malaysian securities. This automated platform comprises the following major computer systems:
- SCORE (System on Computerised Order Routing and Execution): central computer engine that matches all trade orders; and
- WinSCORE, broker front-end system handling order routing and trade confirmation processes.
SCORE is based on a call market system whereby matching prices are determined based on the maximum number of trades that can be executed. Where there is more than one price at which the maximum number of trades can be executed, the price closest to the last traded price will be the matching price. All buy orders above the matching price and all sell orders below the matching price will be executed at the matching price. Orders not executed at the end of a trading session must be reinput for execution in the following session. Except for holidays, trading takes place five days a week (Monday through Friday) and there are two daily trading sessions: a morning session 09:00 to 12:30 (Malaysian time) and an afternoon session 14:30 to 17:00 (Malaysian time).
Bank Negara Malaysia (BNM)
The following systems are operated by the central bank, BNM:
- FAST (Fully Automated System for Issuing/Tendering)
New issues of SSDS-eligible securities are distributed through FAST, an automated system operated by BNM that facilitates electronic invitations to tender, submissions of bids and the processing of tenders.
- BIDS (Bond Information and Dissemination System)
BIDS provides information about the terms of issue and real-time prices as well as details of trades done. Although trading of SSDS-eligible securities is via the OTC market, trading institutions are obliged to report trade details, including price and volume data, through BIDS and the information is disseminated through selected information providers such as Bloomberg and Reuters. Participation in BIDS is restricted to licensed financial institutions and to other market participants approved by BNM.