Bursa Malaysia has introduced a new tool called Trading Reminder, which highlight listed companies that exhibit unusual trading activities, namely volatile price and volume movements. This is in a bid to alert investors so that they can exercise prudence upon encountering such stocks.

In a notice, the local bourse explained that Trading Reminder is set to complement another existing feature, the Unusual Market Activity (UMA) queries. This particular feature requires public-listed companies (PLCs) that experience significant and unexplained price or volume movements to publish public disclosures to explain the situation.

If the PLCs were to respond with a negative confirmation – meaning that it is unaware of any corporate developments that are contributing to the circumstance – and the price and/or volume continues to remain volatile, then a Trading Reminder will be issued as a precautionary measure.

“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 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 elaborated.

The new feature is also designed as an additional measure to Bursa Malaysia’s exiting 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,” it commented.

Additionally, Bursa Malaysia warned that it will have no qualms in pursuing enforcement action against non-compliant brokers who seek to intentionally disrupt market order. You can find out more about the new Trading Reminder tool and other regulatory measures that Bursa Malaysia has also implemented to foster a safer and more efficient trading environment here.

(Source: Bursa Malaysia)

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• Bursa Malaysia
• Bursa Malaysia Securities
• Bursa Malaysia Trading Reminders
• Bursa Malaysia Unusual Market Activity (UMA) Queries
• Shares
• Stock Trading
• Stocks