UBS has launched direct market access (DMA) on Bursa Malaysia, and rolled out its proprietary execution management system, UBS Sapphire, as the exchange prepares to switch to its new cash equities trading platform on Monday.
UBS Malaysia DMA is a zero touch anonymous trading platform that allows clients to execute orders entirely electronically, increasing speed of execution.
The introduction of DMA in Malaysia coincides with the launch of the new trading platform at Bursa Malaysia on December 1 that completes the second phase of a multi-year infrastructure upgrade project. Bursa Trade Securities will now operate on the same infrastructure as Bursa Trade Derivatives, which went live at the end of 2006.
The platform was developed on technology from Atos Euronext Market Solutions - the joint venture between Atos Origin and Nyse Euronext, which was bought out by Nyse Euronext in December. The infrastructure includes the NSC trading platform, Aramis market surveillance platform, and PAM broker workstations.
Bursa Malaysia says Bursa Trade Securities will benefit clients by improving the speed and capacity of execution and broadening the order type flexibility.
In April this year, the exchange began supporting DMA for derivatives trading.
Bursa Malaysia Berhad’s chief executive officer, Dato’ Yusli Mohamed Yusoff, said the exchange has carried out numerous user acceptance tests of Bursa Trade Securities with market participants since the beginning of this year in order to ensure that they were familiar with the new features.
“As with any new technology and system implementation, there are inherent risks involved. We have put in place measures to ensure a seamless conversion to the new trading platform and to minimise any trading disruptions.
“Nevertheless, if an unexpected disruption should occur, as is the case under the current system, there are two possible resumption scenarios. If a major disruption occurs before the start of the trading day, Bursa Malaysia will be able to resume trading within the same day. If a major disruption occurs during the trading day, trading is expected to resume the next business day,” he said.
Separately, HSBC has further expanded its Equities Direct Market Access (DMA) automated trading programme to incorporate Shanghai, Shenzhen, Istanbul and Thailand stock exchanges.
Kevin Bourne, Global Head of eEquities at the bank, comments: "This new roll out provides our customers with automated access to trade seamlessly onto four new exchanges, regardless of where the clients are located. We have already provided clients with access to over 32 markets through our DMA programme and will be further expanding this across the Emerging Markets with new roll outs in 2009."