RHB Investment Bank (RHB) is the first investment bank in Malaysia to be certified by Bursa Malaysia to offer Direct Market Access Equity (DMA Equity) services to clients. RHB utilize the system that was provided by US-based software maker, SunGuard.
Direct Market Access (DMA) infrastructure for the equity market was put up by the Bursa Malaysia last year. With the DMA platform, clients would be able to react quickly to information flows and to self-manage limit orders in the market. The system will allows large transaction to be executed cheaper and faster.
Previously, investors from hedge fund managers to retail investors will have to contact a stockbroker who will then place the order through the computer system. However, with DMA that no longer necessary as they are connected directly to the Stock Exchange.
DMA also allows the use of complex trading strategies, which is only possible with the high speed of sending an order to the exchange in a matter of miliseconds – the duration of an eye blink.
The facility is currently available to only institutional investors and RHB will roll it out to retail investors later this year.
Bursa Malaysia has confirmed that at least three to four more stockbrokers may switch to DMA for equity this year.
DMA is already the norm in advanced markets in the US and Europe, driven by the needs of the large hedge funds.