No. Question Responses 1 As announced in BTS2 Technical Briefing #4(18th April 2013), Bursa will no longer provide the defaulter list from 1 June 2013 onward. Will Bursa no longer provide the BUYING-IN DEFAULTER LIST as well? Bursa will not provide BUYING-IN DEFAULTER LIST after BTS2 launch. 2 Will Bursa dispatch the dynamic limit? Or everything holds within the exchange components? Dynamic limit is held within the Exchange components. 3 Can Bursa provide the list of additional functional features and practices of BTS2 as compared to the current BTS from Business perspective? The new trading features would include stop market order, stop limit order & dynamic limit.
4 Will GTD validity be supported by BTS2? If yes, what is the longest validity supported for GTD orders? Good to Cancel (GTC) and Good to Day (GTD) will not be supported upon BTS2 go live. 5 Will the exchange provide Iceberg orders? No, Iceberg orders will not be supported upon BTS 2 go live. 6 Are there any rules on how far DR must be from Primary? It is stated in our Disaster Recovery Code that as a best practice, the disaster recovery site is located at least 10km from the main business premise and that when the main business premise cannot be accessible for any reason, the disaster site is still accessible. 7 Can the ticksize rules applicable on an instrument change intraday through a BK message?
No, it cant
8 Does the VWAP provided by the Exchange include both on book and off book(DBT) trades? VWAP is computed based on the total value of securities transacted during a particular period of time (the period) divided by the total number of securities transacted during the period Only transaction done on normal market is included i.e. computation excludes buy in, DBT and odd lot.
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No. Question Responses 9 Could we know which daily SCANS file is no longer provided after implement of BT2? Midday files for each PO: SCOTRS1 (OMT Transaction) SCOMDB1 (DBT and Buying-in Transaction) SCOCNAM (client amendment)
End of day files for each PO: SCOTRS2 (OMT Transaction) SCOMDB (DBT and Buying-in Transaction) SCOCNALL (client amendment for the entire day)
These files will be retired by 30 June 2014. 10 Can Bursa advise details on Market Maker Monitoring? How does it relate to Market Maker Quote? With the implementation of quote in market making system, market making monitoring is made more efficient for ascertaining obligation fulfilment. Quotes and orders are distinct. By having quote system, obligation can be identified clearly and easily from orders and this will enable accuracy in monitoring obligations. 11 How is the exchange throttle being handled in BTS2 compared to the current system? Currently Bursa Access pricing model is based on 15 orders/sec per subscription block and it is valid for two years with effect from 1 January 2013. We hope to be able to provide greater flexibility to the industry by increasing the capacity over time but this is subject to further review. 12 Do Simulated Last Price (IOPV Last Price)/ Offer Price/ Bid Price applies to all asset types Or only ETFs? This only applies to ETFs. 13 Will Order tagging be provided in SCORE files? No, it does not.
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No. Question Responses 14 Do you have different market hours on different boards? Or they are all the same? Could you please provide details?
Trading Phases Market Timing Normal Lot Market Odd Lot Market Buying- in Market DBT Market Pre-Opening 8:30am 8:30am - - (1 st session) *Opening /Continuous Trading (1 st
session) 9:00am 9:00am **8:30 am 8:30am End of Session 12.30pm 12.30pm 12.30pm - Pre-Opening 2:00pm 2:00pm - - (2 nd session) *Opening /Continuous Trading (2 nd
session) 2:30pm 2:30pm 2:00pm - Pre-Closing 4.45pm 4:45pm - - (2 nd session) * Trading At Last 4:50pm 4:50pm - - End of Trading Day 5:00pm 5:00pm 5:00pm 5:15pm * Switch over to next phase is instantaneous upon completion of this phase
** The latest time buying-in trades will be broadcasted. This information is available in Bursa Malaysia Securities Bhds Bursa Trade Securities Participating Organisations Trading Manual
No. Question Responses 15 Can you provide the tick size for KLS?
Table I Tick Sizes for Securities Traded and Quoted on Bursa Malaysia Tick Sizes for Securities Traded and Quoted Price Range Tick Size (Sen) Below RM1.00 0.5 RM1.00 up to RM9.99 1 RM10.00 up to RM99.98 2 RM100.00 above 10 Table II Tick Sizes for ETF Tick Sizes for ETF Securities Market Price Tick Size (Sen) ABFMY1 At any price 0.1 Equity-based ETFs Less than RM1.00 0.1 Between RM1.00 to RM2.995 0.5 RM3.00 and above 1 ETBS At any price 1 Buying-In Price The buying-in price will be based on the current tick structure (Table III) and tick sizes rather than the "tick size" structure. Table III Buying-in Tick Size Structure Current Tick Size Structure Below RM1.00 0.5 RM1.00 to RM2.99 1 RM3.00 to RM4.98 2 RM5.00 to RM9.95 5 RM10.00 to RM24.90 10 RM25.00 to RM99.75 25 RM100.00 above 50
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No. Question Responses Note: For bonds, debentures, loan securities, warrants and call warrants, the minimum bid structure has the same minimum trading spreads as for shares. This information is available in Bursa Malaysia Securities Bhds Bursa Trade Securities Participating Organisations Trading Manual. The latest copy can be obtained at this link http://www.bursamalaysia.com/misc/system/assets/469/sec urities_equities_trading_manual.pdf
A. Dynamic Limit 16 What is dynamic limit?
Dynamic limit will be implemented in a form of a price band that varies with movement in the traded price of an instrument throughout the day. Orders with price either buy or sell outside of this price band at the time of order entry will be not be matched and purged from the order book or purged from the trading engine.
17 Who sets the limit?
The threshold percentage is determined by Bursa and applied to all stocks except for IPOs. 18 What is the limit?
The limit will be set on percentage basis for stocks with price RM1 and above, and on sen basis for stocks with price below RM1.00, rounding to the closest bid. For example, Bursa could set 8% for stocks with price RM1 and above, and 8 sens for stocks with price below RM1. Range Threshold Price Dynamic Limit Range Below RM1.00 +/- RM0.08 RM0.80 RM0.72 to RM0.88 RM1 and above +/- 8% RM2.50 RM2.30 to RM2.70
19 4. How often does the limit change? How will I know if the limit is changed?
Bursa will actively monitor the effectiveness of the threshold percentage, and inform the marketplace if there is a need to change the percentage threshold to be effective when the market condition changes.
20 Why buyers can queue above the 8% dynamic limit when the markets highest traded price was at RM11.00 at that point of time?
Since the static limit is 30%, the highest the buyer can place an order is RM 13.56 (no seller queue to sell) 21 The dynamic limit should work in an aggressive way that allows You may queue to sell at limit up or buy at lower limit price as long as it is within the static limit (30%/ 30sen) if there is
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No. Question Responses the seller to sell higher from the current LTP or buyer to buy lower than LTP beyond the 8%.
no possible matching.
22 To avoid fat finger or wrong key in of orders, there should be a control whereby the buyer cannot buy above 8% and the seller cannot sell lower than 8%
Dynamic limit prevents matching of price +/-8%, this mechanism will prevent buyer to make error to buy above 8% and seller to seller below 8%. The dynamic limit will be triggered if there are resting orders in the book that are out of range, any incoming order i.e. the aggressor order attempting to match with those orders will be purged. Resting orders will always be preserved.
23 Is the dynamic order applicable to market order and odd lot?
Dynamic limit will be applicable to market order but not odd lot.
24 Pre-Closing Quotes and Market Depth
In BTS2, are the besk ask and best bid be at Theoretical Opening Price (TOP)? Can the buy price be higher than the sell price? In BTS2, the best ask and best bid may not be at TOP, likewise, it is possible that the buy price is higher than the sell price as the matching algo during pre-open and pre- close is different from the matching algo of continuous trading. For further details on matching algo on pre open and pre close, please refer to the Participating Organisation (PO)s Trading Manual Chapter 3 Market Opening Section 3.3 Theoretical Opening Price (TOP) Calculation. 25 Direct Business Transactions (DBT)
For DBT in BTS2, only one party is required to initiate /key in / submit the DBT. Which party should initiate / key in / submit the order?
In BTS2, we are going to implement the requirement of selling party to initiate / key in / submit the order by providing the following details : Securities 1. Negotiated / agreed price 2. Selling Systems member code e.g. 035 201, 012 202 3. Selling Dealer code 4. Selling client code (which will be translated to CDS account by PO's OMS, before submitting to BTS2) 5. Buying Broker System member code e.g. 037 201, 068 203 6. Buying Dealer code
The buying party only receives the following information: 1. Negotiated / agreed price 2. Selling Systems member code e.g. 035 201, 012 202 3. Selling Dealer code 4. Buying Broker System member code e.g. 037 201, 068 203 5. Buying Dealer code The buying party will then be required to accept / reject the orders. If the buying party was to accept, he has to provide the buying client code (which will be translated to CDS account by PO's OMS, before submitted to BTS2)