Bursa Malaysia’s revised tick size structure, which will see a smaller tick size, and is planned for implementation on Monday, 3 August 2009.
The tick size is the minimum price variation between the buy and sell price for a stock.
The tick size is reduced in line with the current practice by global developed markets and more importantly, to create market depth, enable price discovery and boost liquidity in the local equities market.
The tables below describe the new tick size structure to be adopted by Bursa Securities.
TABLE I - New Tick Sizes for Securities Traded and Quoted On Bursa
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Share Price (RM)
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Minimum Bid Size (RM)
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Below RM1.00
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0.005
|
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RM1.00 up to RM9.99
|
0.01
|
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RM10.00 up to RM99.98
|
0.02
|
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RM100.00 and above
|
0.10
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Additional Information:
- No “force key” will be required
- Order will be rejected if the price entered is more than 30% of the last traded price
- For odd lot quantity, kindly contact your Trading Representative to place order
Table II - New Tick Sizes for ETF
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Securities
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Market Price (RM)
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Minimum Bid Size (RM)
|
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ABFMY1
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At any price
|
0.001 (no change)
|
|
Equity-based ETFs
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Below RM1.00
|
0.001
|
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Between RM1.00 to RM2.995
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0.005
|
|
RM3.00 and above
|
0.01
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For bonds, debentures, loan securities, warrants and call warrants, the minimum bid structure will have the same minimum trading spreads as for shares.
For more information, please refer to Bursa Malaysia’s website
Last updated on 28 July 2009
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