DMA Derivatives

Definition

With the launch of our new electronic trading environment Bursa Trade, the Bursa Trade Derivatives DMA platform will be activated. Our local brokers now enjoy the freedom of being able to choose a front-end solution best suited to their needs.

Investors who are interested to participate in our futures & options markets may now route their orders (via a local broker) directly to the Exchange. The investor may do so with their preferred trading tool – either the one provided by the local broker or their own. This is clearly a superior model compared to the current phone/fax model which increases latency.

The investor thus retains trading anonymity and exerts greater control over trade execution and strategy. Market making, algorithmic trading and basket trading – to name a few – are all possible through DMA.

Timeline

The Bursa Trade Derivatives DMA platform was successfully launched in March 2008.



Brokers may participate by either:
(a) Offering a direct connection to one of two Bursa DMA Gateways to their clients
(b) Developing an own in house solution (to be connected to the Bursa DMA Gateway)
(c) Purchase a solution from a 3rd party vendor (from an Approved Vendor) to be connected to the Bursa DMA Gateway.

Brokers who opt for (b) or (c) should read the DMA Handbook, in particular the explanatory notes and diagrams found in sections B.1, B.2 and B.3. This would spell out the conditions necessary to test connectivity to the Exchange’s platform.

Trading Statistics

	% DMA Contribution (FCPO)	% DMA Contribution (FKLI)
Jun-08	0.0023	1.01
Jul-08	2.14	3.55
Aug-08	3.70	5.01
Sept-08	3.12	5.98
Oct-08	3.94	7.81

Regulatory Framework

This phase of the project calls for the introduction of specific DMA rules and the introduction of the ECOS – 2 Code to the Rules of Bursa Derivatives.  Amendments made to the Rules of Bursa Malaysia in relation to Direct Market Access.