KUALA LUMPUR, March 19 (Bernama) -- Securities Commission Malaysia (SC) and Bursa Malaysia Bhd will maintain continuous trading and market operation to facilitate investors’ management of their risks and opportunities amidst COVID-19.
Both parties believe that continued and reliable access to the Malaysian capital market is vital for immediate and long-term market confidence.
"It is important for the markets to remain open, as closing the markets would neither mitigate nor address the underlying causes of market volatility.
"Instead, it will create greater uncertainty and adverse market sentiment by denying investors’ access to their investments," said SC and Bursa Malaysia in a joint statement here today.
The two parties acknowledge the current market volatility amidst a challenging and uncertain environment, and that containing the COVID-19 spread is a top priority for the government, facilitated by a fully-functioning financial system, including the stock market.
“The SC and Bursa have business continuity measures in place, including backup sites, recovery facilities and alternative communications channels to operate the market in a pandemic situation.
“Similarly, all market intermediaries have in place business continuity frameworks to ensure continuity of their business,” they said.
Market management measures such as circuit breakers, static and dynamic price limit are also in place and known to participants to manage excessive volatility, they said, adding that it was important for investors to have certainty and continuity during challenging market conditions
“Robust clearing funds, margins and deposits are also in place to ensure clearing and settlement risks are managed,” they said.
The two parties gave the assurance that they would continue to monitor the ongoing developments to proactively manage risks in the marketplace, and where appropriate, introduce additional precautionary measures.
SC, Bursa Malaysia, ASCM, Stock market, Suspension, MCO