Bursa Malaysia Securities Berhad (“Bursa Malaysia” or the “Exchange”) is bolstering its investor safeguards with the introduction of Trading Reminders with immediate effect, a new tool highlighting listed companies that exhibit unusual trading activity. 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.
Bursa Malaysia has observed instances where share prices and volumes remain volatile despite PLCs responding that there were no new developments in their UMA response. Hence, the Trading Reminder flag[1] 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.
This initiative complements Bursa Malaysia's existing multi-pronged approach to market regulation. Pre-emptive actions, including engagement with Participating Organisations to address irregular trading concerns, remain a cornerstone of efforts on investor protection. Bursa Malaysia also retains the option to issue 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.
These enhanced investor protection measures contribute to the Exchange’s commitment to foster an efficient and vibrant trading environment. Full details on these measures are available on the Bursa Malaysia website at https://www.bursamalaysia.com/regulation/about_bursa_malaysia_regulatory/market_surveillance/overview .
[1] The Trading Reminder will be published via a Listing Circular on Bursa Malaysia Securities’ website.
