CLOB. System of aggregate limit orders on all securities received by specialists, market makers, and electronic trading systems. The central limit order book can fall into one of two designations: "soft" or "hard." The difference between the two is that a "hard" CLOB executes limit orders immediately and a "soft" CLOB executes limit orders as they are facilitated. This system has been advocated by the SEC but opposed by most major exchanges due to the fact that the exchanges could potentially lose volumes of trades.
New Straits Times 01-29-2000 KLSE will meet Singapore Exchange over CLOB issue Edition: Main/Lifestyle; 2* Section: Business
THE Kuala Lumpur Stock Exchange will meet the Singapore Exchange Ltd next week in a move to end the uncertainties surrounding the Central Limit Order Book International (CLOB).
"KLSE and SGX will continue to hold discussions but as time is of the essence, KLSE believes that CLOB investors should concentrate on those proposals that have fully complied with the relevant rules and procedures," KLSE said in a statement yesterday. The local bourse reiterated that CLOB investors should be allowed to decide or be given the opportunity …
Clob was set up in Singapore to trade Malaysian companies over-the-counter in Singapore after the Malaysian and Singaporean exchanges separated in 1990. In 1998, when Malaysia imposed controls on its currency at the height of the Asian economic crisis, about 172,000 Clob investors - as many as 95 percent of them Singaporeans - had their shares frozen. The total shares had a value of approximately US$4.47 billion.
On February 25, 2000, the Kuala Lumpur Stock Exchange and the SES issued a joint statement announcing a "comprehensive solution" for repatriating the shares to Malaysia. The exchanges signed two agreements, allowing investors to mix and match two separate schemes for freeing up their accounts.
Scheme A provides for Clob shares to be released on a staggered basis over 13 months (which is down from 18 months in a previous, scrapped proposal), which began in July. Each holder receives only 50 shares per week - meaning that to reach a single lot of 1,000 shares, one must wait 20 weeks before selling. Investors have to pay a transfer fee of 1.5 percent (down from two percent), based on the February 15 closing price of their repatriated shares. Investors had until March 31 to accept this option.
Scheme B provides for the shares to be released for trading on the KLSE over nine months, beginning in January 2003. There will be an administrative fee of one percent, based on the average share prices over the last five trading days of October 2002, to be paid to a KLSE affiliate. Investors can sign up for Scheme B anytime within 32 months of March 31.
Brokers said in early July that investors were largely reluctant to take the second option, although they were concerned about the transfer fees involved in the faster scheme, which have to be paid to Effective Capital, the Malaysian company designated to handle the matter.
A number of shareholders have also said that they had yet to receive their share release schedule from Effective Capital. The company is controlled by Singapore businessman Akbar Khan, who has close ties with Malaysia's Finance Minister Daim Zainuddin. Effective Capital's CEO is Akbar's nephew, Mohamed Moiz Ali Moiz.
Market-watchers believe Clob shareholders are likely to wait until they have accumulated a single lot before selling them. Although odd-lot trading is possible, observers said investors are likely to be put off by the fact that their shares will fetch a lower price if sold in odd lots. Several Malaysian businessmen have already bought out the positions of some Clob shares at a discount.
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CLOB. System of aggregate limit orders on all securities received by specialists, market makers, and electronic trading systems. The central limit order book can fall into one of two designations: "soft" or "hard." The difference between the two is that a "hard" CLOB executes limit orders immediately and a "soft" CLOB executes limit orders as they are facilitated. This system has been advocated by the SEC but opposed by most major exchanges due to the fact that the exchanges could potentially lose volumes of trades.
Read more: http://www.investorwords.com/7551/central_limit_order_book.html#ixzz0zht6FeAs
New Straits Times
01-29-2000
KLSE will meet Singapore Exchange over CLOB issue
Edition: Main/Lifestyle; 2*
Section: Business
THE Kuala Lumpur Stock Exchange will meet the Singapore Exchange Ltd next week in a move to end the uncertainties surrounding the Central Limit Order Book International (CLOB).
"KLSE and SGX will continue to hold discussions but as time is of the essence, KLSE believes that CLOB investors should concentrate on those proposals that have fully complied with the relevant rules and procedures," KLSE said in a statement yesterday.
The local bourse reiterated that CLOB investors should be allowed to decide or be given the opportunity …
http://www.highbeam.com/doc/1P1-82515038.html
case study about CLOB:
http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan003215.pdf
Cross-listings and home market trading volume: the case of Malaysia and Singapore.
http://www.allbusiness.com/finance-insurance/356979-1.html
The Central Limit Order Book (Clob)
Clob was set up in Singapore to trade Malaysian companies over-the-counter in Singapore after the Malaysian and Singaporean exchanges separated in 1990. In 1998, when Malaysia imposed controls on its currency at the height of the Asian economic crisis, about 172,000 Clob investors - as many as 95 percent of them Singaporeans - had their shares frozen. The total shares had a value of approximately US$4.47 billion.
On February 25, 2000, the Kuala Lumpur Stock Exchange and the SES issued a joint statement announcing a "comprehensive solution" for repatriating the shares to Malaysia. The exchanges signed two agreements, allowing investors to mix and match two separate schemes for freeing up their accounts.
Scheme A provides for Clob shares to be released on a staggered basis over 13 months (which is down from 18 months in a previous, scrapped proposal), which began in July. Each holder receives only 50 shares per week - meaning that to reach a single lot of 1,000 shares, one must wait 20 weeks before selling. Investors have to pay a transfer fee of 1.5 percent (down from two percent), based on the February 15 closing price of their repatriated shares. Investors had until March 31 to accept this option.
Scheme B provides for the shares to be released for trading on the KLSE over nine months, beginning in January 2003. There will be an administrative fee of one percent, based on the average share prices over the last five trading days of October 2002, to be paid to a KLSE affiliate. Investors can sign up for Scheme B anytime within 32 months of March 31.
Brokers said in early July that investors were largely reluctant to take the second option, although they were concerned about the transfer fees involved in the faster scheme, which have to be paid to Effective Capital, the Malaysian company designated to handle the matter.
A number of shareholders have also said that they had yet to receive their share release schedule from Effective Capital. The company is controlled by Singapore businessman Akbar Khan, who has close ties with Malaysia's Finance Minister Daim Zainuddin. Effective Capital's CEO is Akbar's nephew, Mohamed Moiz Ali Moiz.
Market-watchers believe Clob shareholders are likely to wait until they have accumulated a single lot before selling them. Although odd-lot trading is possible, observers said investors are likely to be put off by the fact that their shares will fetch a lower price if sold in odd lots. Several Malaysian businessmen have already bought out the positions of some Clob shares at a discount.
http://www.atimes.com/se-asia/BI02Ae05.html
Capital & Control: Lessons From Malaysia:
http://www.people.hbs.edu/lalfaro/papers/capitalandcontrol.pdf
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