Published September 3, 2008

Bursa to consider shorter trading hours

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(KUALA LUMPUR) Bursa Malaysia and several associations met yesterday to discuss the possibility of shortening the trading hours while a dialogue with the Securities Commission (SC) will be held later, says a report in The StarBiz.

When contacted, Bursa Malaysia chief market operations officer Devanesan Evanson said the meeting would be held 'early this month'.

'The session will allow the parties to discuss the feasibility and impact of shorter trading hours,' he told StarBiz.

The parties involved include the Association of Stockbroking Companies Malaysia, Malaysian Futures Brokers Association (MFBA), Remisiers Association of Malaysia (Persama), Bumiputra Remisier Association, Malaysian Investment Banking Association, Malaysian Association of Asset Managers and Federation of Malaysian Unit Trust Managers (FMUTM).

Mr Devanesan said Bursa would discuss with the SC about the proposal on trading hours and that the talks might involve possible rules changes, reported Starbiz.

'Bursa is conducting a jurisdictional study,' he said.

Mr Devanesan said Bursa would review the request for shorter trading hours only after the discussion with market participants, before making a recommendation.

'It is premature at this juncture to comment on the impact of the shortened trading hours as feedback from the relevant parties needs to be sought before any recommendations can be made,' he said.

Persama president Sam Ng Soon Lee said shorter trading hours would improve the efficiency and volume of the market as well as provide significant cost savings for brokers and Bursa.

'This could allow brokers to practise the pre-order which was supposed to be launched at the end of July this year,' he said.

MFBA president Steven Lai said the association and futures brokers were likely to ask Bursa to adjust the KLCI futures trading hours in line with any change in the cash equity trading hours, reported StarBiz.

A spokesman from FMUTM said as this would be the first meeting with Bursa, it was likely to be more of an exploratory discussion.