Those practical difficulties explain a good deal (though not all) of the opposition to the CLOB
concept that began when the idea was first advanced, and that continues to this day.
A second consequence of the ITS was that only price priority mattered; the specialist could match the better price offered elsewhere and still retain the order, an outcome not consistent with the price-time priority of a CLOB
. Moreover, the only dimension of execution quality incorporated into this framework was price; factors such as speed of execution were deemed of little consequence in the decades before the advent of electronic trading.
However, the matter seems to be complicated by the suspicion that the Singapore investors are really only nominees for big, politically connected Malaysian investors, who traded via the CLOB
rather than the KLSE to avoid scrutiny by Malaysian authorities and media.
Singapore dealers said the ruling spread confusion in the market as it appears to be targeted at Clob
International, which is Singapore's over-the-counter market for mainly Malaysian equities.
"We expect rule changes around anonymity that will finally encourage CLOB
trading to start.