Kuala Lumpur Stock Exchange: CLOB Solution Maintained Fair & Orderly Market

The comprehensive solution to regularise securities formerly traded under the Central Limit Order Book (CLOB) has achieved the objective of maintaining a fair and orderly market.

The comprehensive solution, amongst others, included a 13-month staggered release of CLOB traded securities from July 2000 to July 2001. The release of the final balance of CLOB traded securities under the 13-month staggered release was completed today, Monday, 23 July 2001.

Kuala Lumpur Stock Exchange (KLSE) and the Singapore Exchange (SGX) agreed on the comprehensive solution to CLOB on 25 February 2000. The comprehensive solution reached meet the requirements of:

• complying with the Malaysian laws governing the securities market;
• meeting the objectives of not causing disruption to the Malaysian market; and
• making Malaysia the premier market for trading of Malaysian securities

With the acceptance of the offer of the comprehensive solution, 98% of securities formerly traded under CLOB have been regularised. Since commencement until its completion today, the 13-month staggered release has proceeded smoothly and achieved the objective of regularising securities formerly traded under CLOB.