CEO Morning Brief

Bursa Introduces Trading Reminder Flag on Top of Unusual Market Activity Queries

Publish date: Tue, 21 May 2024, 10:41 AM
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TheEdge CEO Morning Brief
Photo by Suhaimi Yusuf/The Edge

KUALA LUMPUR (May 20): Bursa Malaysia said on Monday it is introducing Trading Reminders, a new tool that highlights unusual trading activity in addition to queries issued over spikes in prices and volumes.

There have been instances where share prices and volumes remain volatile, despite companies replying that there were no new developments to the unusual market activity (UMA) queries, Bursa said in a statement.

“The Trading Reminder flag aims to alert investors to exercise caution when encountering a stock displaying persistent unusual price and/or volume movements after the listed company’s UMA response,” the local bourse operator added.

The latest initiative complements the existing multi-pronged approach to market regulation to protect investors, including engagement with participating organisations to address irregular trading concerns, Bursa noted.

Bursa added that the exchange also retains the option to issue Market Alerts and 'Designations', which caution investors on stocks susceptible to excessive speculation or manipulation.

A Market Alert is an alert initiated to caution the investing public on possible irregular trading activities of a particular security, Bursa said on its website.

Meanwhile, securities will be declared as 'Designated Securities' when there are excessive speculation and abnormal trading patterns. Trading could continue under the label, but will require upfront payment before buying and a free balance of securities before selling.

Source: TheEdge - 21 May 2024

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