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SECURITIES MARKET, The CDS keeps track of all buying and selling in an…
SECURITIES MARKET
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Settlement Timing
- Trades settle on a T+3 schedule (3 days after trade)
- Sellers need enough shares by T+2, and buyers must pay by T+3
- Missing deadlines may lead to penalties.
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Stock Broking Company
A stock broking company (SBC) helps investors trade. Many SBCs now operate as investment banks, offering broader financial services.
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SECONDARY MARKET
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LEAP Market
- In June 2017, Bursa Malaysia has announced a newly established market known as Loading Entrepreneur Accelerator Platform (LEAP)
- aims to provide small and medium-sized enterprise (SMEs) with fund raising access and visibility through the capital market.
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Trading System
- In 1992, Bursa Malaysia used full computerized system for matching and executes share transaction.
- It is a System on Computerized Order Routing and Execution (SCORE).
- In 1994, the WinSCORE was implemented and used by stock broking company or Investment Bank to execute the share transaction.
- WinSCORE was known as Broker Front End System.
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- New share offered to existing shareholders . (Pre-Emptive right)
- Usually, Company will offer lower that market price.
- Rights offering use provisional Allotment letter (PAL). – specified time to accept.
- In 2009, main market was lunched by bursa Malaysia and securities commission after merged between main board and second board.
- Access, Certainty, Efficiency (ACE)
- Evolution from MESDAQ market. Previously, listed companies in MESDAQ market deal with high technology’s company and fast growing company.
- After transformed to ACE market, bursa open to all companies from various sector as platform to expand the business engage with sponsor as least 3 years listing
- Open 9:00 A.M - 12:30 P.M (Morning Session)
- An order to BUY and SELL stock at best price possible
- If and order is made to BUY, broker/dealer expect to get lowest price
- If and order is made to SELL, broker/dealer expect to get highest price
- An order to BUY and SELL at specified price
- If an order is made to BUY, broker/dealer will execute the order only if the price is less then or equal to limit price
- If an order is made to SELL, broker/dealer will execute the order only if the price is higher or equal to limit price