Bursa Malaysia and NYSE Euronext Collaborate on an Open, Standards-based Derivatives DMA Platform

3  from  Automated Trader Magazine

April 22nd, 2008: NYSE Euronext (NYX) and Bursa Malaysia recently introduced a state-of-the-art direct market access (DMA) platform for the Malaysian derivatives market based on technology provided by NYSE Euronext Advanced Trading Solutions.

For Bursa Malaysia, the new service leverages NYSE Euronext’s SFTI® technology to enable Bursa Malaysia member firms to more efficiently sponsor and manage their clients’ direct access to the market. The new Bursa Malaysia infrastructure consists of a DMA gateway offering the privacy, low latency and high throughput of direct market access with the control and risk management of traditional broker-routed flow. The Bursa Malaysia DMA gateway utilizes the same core technology that NYSE Euronext is deploying throughout the company’s U.S. and European markets. The Bursa Malaysia DMA gateway will also be interconnected with other nodes on the SFTI network to support international access to the exchange and its members.

“In launching this new trading gateway, we are now able to partner with our local member firms to offer an ultra-high performance, risk-managed channel direct to the market for trading,” said Omar Merican, Chief Operating Officer of Bursa Malaysia. “As a node on the global SFTI community, this new solution provides truly open and global access to our market through a variety of networks and end-user applications. The investment we have made in Bursa Trade, our core trading platform, allows us to scale easily to accommodate the increased transaction flow we expect DMA to generate.”

The NYSE Euronext-provided solution supports sophisticated, latency sensitive traders and leverages accepted industry standards for connectivity and messaging. This open approach provides DMA traders maximum flexibility in choosing networks and trading applications. Initially, the DMA solution will support direct leased lines and BT’s Radianz Shared Market Infrastructure.

“We worked closely with the Bursa Malaysia DMA team and a panel of Kuala Lumpur member firms to eliminate the traditional barriers to DMA trading,” said Peter Tierney, Managing Director, Asia-Pacific, NYSE Euronext. “The resulting solution provides Bursa Malaysia members with best-of-breed technology and provides members’ clients with access to an advanced platform using their choice of trading engine and network.”

Stephen Kwong at AMFutures in Kuala Lumpur, said: “The solution makes true DMA relatively simple and straightforward – the system is open and standards based so our clients were able to leverage existing connectivity and trading technology investments and all parties have transparency into the over all performance of the system.”