SC and Bursa Malaysia Implement Temporary Revisions to Market Management and Control Mechanisms

10 July 2020 | Kuala Lumpur

The Securities Commission Malaysia (SC) and Bursa Malaysia Berhad (Bursa Malaysia) will implement temporary revisions to existing market management and control mechanisms, namely the dynamic and static price limits, and the circuit breaker, to provide added stability and confidence in the marketplace. The revisions will be applicable for a six-month period from 20 July 2020 to 18 January 2021.

The decision for these precautionary measures took into account global market conditions that remain volatile amidst persistent uncertainties due to Covid-19, continued economic weaknesses and the re-escalation of geopolitical tensions.

The SC and Bursa Malaysia will continue to closely monitor global developments and take a prudent approach in implementing the necessary measures to support a fair and orderly market.

i. Revised Static and Dynamic Price Limits for FBMKLCI Component Stocks

Securities Type	Securities Prices	Static Price Limit	Dynamic Price Limit
FBMKLCI Component Stocks	>=RM1.00	Upper limit price +30% Lower limit price -15%	Upper dynamic limit +8% Lower dynamic limit -5%
FBMKLCI Component Stocks	<RM1.00	Upper limit price +30 sen Lower limit price -15 sen	Upper dynamic limit +8 sen Lower dynamic limit -5 sen

ii. Revised Circuit Breaker Trigger Levels

Trigger Level	FBMKLCI Decline	From 9:00am - before 11:15am	From 11:15am to 12:30pm	From 2:30pm – before 3:30pm	From 3:30pm to 5:00pm
1.	FBMKLCI falls by an aggregate of 10% or more but less than 15% of the previous market day’s closing index	1 Hour	Rest of Trading Session	1 Hour	Rest of Trading Session
2.	FBMKLCI falls by an aggregate of or more than 15% of the previous market day’s closing index	Rest of Trading Day

Note: Temporary reduction of the circuit breaker levels from three levels (10%, 15% and 20%) to two levels (10% and 15% only)

SECURITIES COMMISSION MALAYSIA

BURSA MALAYSIA BERHAD

SC-World Bank-IOSCO Asia Pacific Hub Conference 2019: Enhancing Financial Inclusion through Islamic Finance and FinTech
(From left to right):

Abayomi A. Alawode, Head of Islamic Finance, Finance, Competitiveness and Innovation, The World Bank Group
Datuk Syed Zaid Albar, Chairman of the Securities Commission Malaysia (SC)
Dr. Firas Raad, Country Manager for Malaysia, East Asia and Pacific, The World Bank Group
Datuk Zainal Izlan Zainal Abidin, Deputy Chief Executive of SC