Malaysia’s intra-day short selling restrictions to remain until end of 2021
27 August 2021 Malaysia
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The Securities Commission Malaysia (SC) and Bursa Malaysia Berhad will extend the temporary suspension of intra-day short selling (IDSS) until the end of 2021.
Temporary waivers applicable to short selling by proprietary day traders (PDT) will also be extended for this period.
The Malaysian securities market regulator and the Malaysian stock exchange indicated in a joint statement that this extension of the short selling ban has been taken in the context of ongoing steps to improve market stability and strengthen the integrity of Malaysia’s capital market.
This will include automated application of an “at-tick” rule to Bursa Malaysia’s trading system, where IDSS and PDT short sales orders will be at the prevailing best selling price or above, along with further enhancements to improve the efficiency and resilience of the Bursa Trade Securities 2 (BTS2) platform.
The temporary ban on short sales was introduced on 24 March 2020 in the face of the Covid-19 pandemic. On 22 February 2021, SC and the stock exchange took a decision to extend this suspension until 29 August.
In light of this additional extension, SC and Bursa Malaysia say they will continue to monitor developments affecting the capital market and will take necessary measures to ensure a fair and orderly market.
Temporary waivers applicable to short selling by proprietary day traders (PDT) will also be extended for this period.
The Malaysian securities market regulator and the Malaysian stock exchange indicated in a joint statement that this extension of the short selling ban has been taken in the context of ongoing steps to improve market stability and strengthen the integrity of Malaysia’s capital market.
This will include automated application of an “at-tick” rule to Bursa Malaysia’s trading system, where IDSS and PDT short sales orders will be at the prevailing best selling price or above, along with further enhancements to improve the efficiency and resilience of the Bursa Trade Securities 2 (BTS2) platform.
The temporary ban on short sales was introduced on 24 March 2020 in the face of the Covid-19 pandemic. On 22 February 2021, SC and the stock exchange took a decision to extend this suspension until 29 August.
In light of this additional extension, SC and Bursa Malaysia say they will continue to monitor developments affecting the capital market and will take necessary measures to ensure a fair and orderly market.
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