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BURSA Malaysia Bhd has assured the investing public that the failure of the dissemination of equity indices on Monday will not recur and that the reliability and integrity of the stock exchange's systems are intact.

Its chief information officer Yew Kim Keong told reporters at a briefing yesterday that Bursa had a strict regular testing regime to ensure the reliability and integrity of its programmes.

He explained that the failure was due to a limitation in one of the parameters in the index computation programme.

Yew said the failure was not due to the price adjustment to Malayan Banking Bhd's share price after it was traded exdividend, which was earlier suspected to be the cause of the problem.

He also revealed that there was another "minor" problem on Monday with one of the back-up broadcasting feeds at a broker's terminal but that was rectified in 15 minutes.

"We have over 1,000 programmes for trading purposes. This sort of problem can happen, but the most important thing is that we rectified the problem in the shortest time possible," he said.

Yew added that the programme itself could accept up to 1,250 index component stocks.

He said prior to the failure, there were a total of 998 component stocks and when another three stocks were added to the list, it crossed to four digits and hence, the disruption in the programme.

Its chief operating officer Omar Merican said such problems should not recur until the index component stocks reached 1,250 or 10,000.

He said there was no need to replace the existing programme which has been in operation since 1995. However, he said it would re-assess the programme once the component stocks draw near the 1,250-level.

The dissemination of equity indices was suspended from 9am to 9.54am on Monday, but resumed by 9.55am after Bursa took immediate remedial action.

It did not affect the trading of equities and derivatives.

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