The 'customisation' of trading access, particularly in line with the consolidation
of the securities and derivatives markets - and especially costs/charges,
etc. will be made with extensive industry consultation.

But first, before any of this can happen, the Demutualisation Bills
must be passed.

On your second point, to update you, the common trading platform
is expected to be launched mid-2004, barring any hitches. That would
enable the open protocols necessary for internet-based access.
We are also in the process of applying to SC to amend Rules to allow
internet-based trading...

-azran

>>> Toh Hoon Khee <keithy@streamyx.com> 08/20 10:27 AM >>>

Sir

t was nice to meet you at the meeting on 18 Aug re the proposed 
amendments to MDEX busines rules.

I'd like to outline below some of the matters that could well enhance 
the value of the local participantship

1 Since KLSE will be one exchange for securities and derivatives, you 
should look into allowing local to trade shares on stockist and 
Investment account. That way they can engage in activities like 
arbitrage with greatly reduced costs of trading in securities. This is 
following world benchmark eg the CBOE "locals" are treated by the NYSE 
as "specialists" for the purposes of trading stocks on the NYSE.

2 The business rules should be amended as soon as possible to allow 
locals to exercise their trading rights from home, ie get the benefits 
of reduced fees while phoning in orders etc. Sometimes the natural 
progression of traders is that they do not want the hustle and bustle of 
being at the front line, so they retire from very active trading. But 
they should still be allowed to gain the benefits from their trading rights.

3 Once the exchanges merge with the common tradng platform, remisiers 
will also have trading access directly to futures or options. I suggest 
that you safeguard the rights of the locals and ensure that their 
trading fees remain the lowest for all participants it should be at 
least 20% what the market pays the trading participants, otherwise, what 
little trading rights the 'seat' confers is lost of diminished and you 
will have this class of participant that exist in the business rules but 
have zero value.

I hope that you will take consideration of my suggestions.

Thanks for your attention
Yours sincerely
Toh Hoon Khee
Local No 5