ALMOST six years after it was first introduced, regulated short selling (RSS) has finally gained some traction on Bursa Malaysia. RSS trades have surged in the past one year, from virtually zero in terms of turnover to an all-time high of RM293 million in June.
While the gains are promising, RSS still has a long way to go in Malaysia. In June, it only accounted for 0.6% of the total value traded on the open market. Heavy regulation, high transaction costs and impractical procedures have hampered the adoption of RSS, says an industry player.
“Compared with the overall total market volume, RSS activity can be considered low. However, if…