Background

Bursa Malaysia introduced the Electronic Trading Platform (ETP) on 10th March 2008 for the Malaysian bond market. This new platform was introduced to boost transparency and liquidity as well as increase efficiency in bond trading. The launch is in line with the ongoing commitment to further improve market accessibility and increase trading efficiencies via infrastructure enhancement initiatives.

The decision to develop the ETP was made in February 2004 by the National Bond Market Committee includes the Ministry of Finance (MoF), Securities Commission (SC) and Bank Negara Malaysia (BNM).

The Platform

This new platform, which is developed and customised based on the Korea Exchange's bond trading system, allows dealers to match bids with offers, negotiate deals and access historical data through a common computerised network.
ETP, offers investors a real-time price quotation and facilitates the trading and reporting of all secondary market activities. The key business components that contribute to the business of ETP are the provisions of:

• Central order book for matching, trade reporting and negotiation
• A comprehensive dissemination system for price/yield and trade  information dissemination
• A data storage for market history data referential maintenance for exchange administrator
• A real time market surveillance system.

ETP system interfaces with other systems such as the FAST (Fully Automated System for Tendering) and other information provider (ie. Bloomberg, Reuters). For more information, please visit http://www.klse.com.my/website/bm/trading/bonds/etp.html