File photo of Bursa Malaysia Bhd building on Bukit Kewangan. [NSTP/ASYRAF HAMZAH]

KUALA LUMPUR: Bursa Malaysia has today implemented Intraday Short Selling (IDSS) for all investors as part as its ongoing initiative to boost market liquidity. 

Under the IDSS framework, investors will be able to sell securities first and buy the securities later within the trading day itself.

IDSS can be carried out on a selected list of approved securities, currently comprising 280 securities and will be reviewed every six months.

The creation of the IDSS was first announced by Prime Minister Datuk Seri Najib Razak at the World Capital Market Symposium 2018 in February.

 “Introducing IDSS to a wider group of investors is timely considering the growing sophistication of market participants.

“This measure is part of the exchange’s strategy to boost market liquidity and further improves flexibility for market participants to refine their trading and risk management strategies,” said Bursa chief executive officer Datuk Seri Tajuddin Atan in a statement today.

 “The exchange will continue to undertake initiatives to provide a more efficient and facilitative market framework and the introduction of IDSS is set to further advance the exchange’s efforts to build a dynamic and vibrant capital market,” he added.

Industry players have said the move could lure new investors and make the Malaysian bourse more vibrant.

IDSS was previously reserved for a select group of licenced brokers or the proprietary day traders because it was deemed to be highly speculative and therefore risky, so opening up the segment can attract more investors to trade in Bursa Malaysia, they added.

Bursa said a robust compliance requirement and safeguards had also been put in place to allow for IDSS trades to take place.

This includes market controls for IDSS suspensions if a stock price falls by more than 15 per cent from the previous day closing price or if the gross short selling volume exceeds the daily maximum limit of three per cent of outstanding shares per security.

The framework also specifies compliance obligation requirements for investors before IDSS activities can commence.

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