Tuesday, October 06, 2009

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: ,

0 Comments:

Post a Comment

<< Home


"There is the plain fool who does the wrong thing at all times anywhere, but there is the Wall Street fool who thinks he must trade all the time."J Livermore Manchester City FCl Crude Palm Oil

fcpo.blogspot.com


From Dragons and Bulls by Stanley Kroll
Introduction and Foreword
The Importance of an Investment Strategy
5 The Art of War, by Sun Tau (circa 506 BC) and The Art of Trading Success (circa AD 1994)
That's the way you want to bet
Long-term v Short term trading
Technicals v Fundamentals
Perception v Reality
Part 1: Winners and Losers
Part 2: Winners and Losers
Sun Tzu: The Art of War
Those who tell don't know, those who know don't tell
Why there is no such thing as a "bad market"
The Secret to Trading Success
The Experts, do they know better?
Risk control and money management
Larry Hite: The Billion Dollar fund Manager
Systems Trading:Kroll's Suggested Method
Buy the Strength Sell the Weakness
Good advice
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system