Bursa Malaysia (BM) will go live with Direct Market Access
(DMA) on 1 November on its derivatives platform, migrating its
equities across at the beginning of 2008.
The gateway, which is installed next to the exchanges
matching engine, can be accessed via NYSE TransactTools and GL
Gerald Blondel, head of exchange development and DMA project
manager at BM, revealed details of the scheme at FOWs
14th annual derivatives conference in Singapore and also used
the opportunity to appeal for a market maker for its imminent
dollar denominated crude palm oil futures contract. Blondel
confirmed that the contract, which will go head-to-head with a
similar offering by Singapore Exchange (SGX), will debut by
BM has seven local brokers already confirmed to begin offering
DMA including AM Futures, Kenanga and Okachi. The gateway will
bring latency times down to 6 milli-seconds per order, with the
matching engine having processing capabilities of 1,300 orders
For me, DMA is not a trend because a trend can be
reversed. In my opinion, it is the fastest way to connect to
the exchange and it is an evolution, said Blondel.
Speaking on a technology innovation session, Richard Man, head
of Asia Pacific Sales at BT Radianz, heralded the development
as BM is the only exchange in the region apart from SGX to
embrace the concept. Although in favour of DMA, Peter Tierney,
managing director, NYSE Transact Tools, stressed the importance
of anonymity for many traders when connecting directly to the
market. While most people associate DMA with latency the
trader often wants the fastest connection with complete
privacy. Their strategies are very sophisticated and you
cant ensure them enough that their privacy will be kept
completely, he said.
In November 2006, BM replaced its derivatives platform to one
provided by NSC, which also hosts Euronext and its DMA facility
will be available either via the gateway or a participants own
hosting solution connected to one of BMs certified access
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