Bursa Malaysia announced the introduction of Direct Market Access (DMA) for the Derivatives market in line with the exchange's efforts to enhance market accessibility and trading efficiency.
Bursa Malaysia Berhad's Chief Executive Officer, Dato' Yusli Mohamed Yusoff said, "DMA is the fastest way to connect an investor to the market and it will change the trading landscape in Malaysia. With the wider spectrum of trading activities offered, DMA will give investors more control over their trade executions.
"DMA clearly puts us in a position on par with international markets and increases our competitiveness as it meets global investors' demand for a more efficient mode of trading. This will certainly widen our reach to a larger pool of local and international investors," Dato' Yusli added.
The benefits of DMA:
- It is a 'zero-touch electronic trading' solution which enables investors to route orders directly to the exchange for immediate execution
- It will significantly reduce the time for orders to be sent and matched from the previous average of 5 seconds per transaction to a fraction of a second
- It has the ability to support algorithmic and block trading which allows institutional investors greater control through using pre-determined order conditions
- It provides greater access to international investors as it facilitates the introduction of Internet trading for the derivatives market