Error trade on KLK
There was an erroneous trade done on Kuala Lumpur Kepong Bhd yesterday, that a foreign brokerage appealed to Bursamalaysia to cancel. All I can say is any FOL can see that this was an erroneous trade between willing seller and a non willing buyer. Whether Bursa should cancel the trade is up to them, but on the ASX, there is a rule that 'in the case of an obvious error....members are obliged to mutually void the transaction"
The expert in the article says,
Kumpulan Sentiasa Cemerlang Sdn Bhd research head Choong Khuat Hock said it would be unfair to reverse the order of the trade.
“It was a valid transaction according to law. There was a willing buyer and willing seller. If trade were to be subsequently cancelled, who is going to be responsible for the compensation?
To me it is obvious since the firm request for cancellation that they are not indeed 'willing buyers'. But then the Exchange needed to consider the KLK impact on the index value.Bursa has decided to do away with stock matching for morning session closing.
Labels: fkli, index futures
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