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.
Bursa Malaysia Securities Berhad has introduced Trading Reminders, a new tool highlighting listed companies that exhibit unusual trading activity.
This is part of the exchange operator’s enhanced investor protection measures aimed at fostering an efficient and vibrant trading environment.
Trading Reminders aim to alert investors to exercise caution
The Trading Reminders issued by Bursa Malaysia will be in addition to the Unusual Market Activity (UMA) queries by the Exchange that prompt public disclosure from public listed companies (PLCs) experiencing significant, unexplained price or volume movements.
The exchange operator has identified events where share prices and volumes remain volatile despite PLCs responding that there were no new developments in their UMA response.
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.
Trading Reminder is part of Bursa Malaysia’s existing multi-pronged approach to market regulation, which include:
- Pre-emptive actions, such as engagement with Participating Organisations to address irregular trading concerns, remain a cornerstone of efforts on investor protection;
- Market Alerts and Designations, which caution investors on stocks susceptible to excessive speculation or manipulation.
- The Exchange also reiterates it will not hesitate to pursue enforcement action against recalcitrant brokers who disrupt market order.
Retail investors grew by 22% in Q1 2024
Bursa Malaysia’s efforts to promote growth and participation from retail investors, especially the younger generation, in the local stock exchange are gaining traction.
As of Q1 2024, local retail investor participation in the securities market stood at 22%, while participation in the derivatives market stood at 17% for FKLI and 25% for FCPO respectively.
The new dynamics are also attracting the wider trading industry to Malaysia. Webull just launched its discount brokerage in the country, providing access to trade Bursa Securities and Bursa Derivatives alongside US-listed stocks and exchange-traded funds (ETFs) via the Webull Malaysia app.
Last month, the broker secured a Capital Markets Services License for Dealing in Securities (restricted to listed securities) and Dealing in Derivatives from the Securities Commission Malaysia.
The broker offers competitive brokerage fees for trades with no platform fees. To commemorate its launch, Webull Malaysia offers zero commission on tradeable Bursa-listed stocks, US-listed stocks, and ETFs on the Webull app for 180 days from opening a Webull Malaysia account.
