Risk Management Statement

SIGNIFICANT RISKS

Central to the role of the Exchange is the provision of a fair and orderly marketplace for fund raising and investment activities. Accordingly, Bursa Malaysia is focusing its efforts in performing its regulatory duties, managing systemic risks in the market and minimising business interruptions.

In performing its regulatory duties for ensuring a fair and orderly market, acting in the public interest and protecting investor interests, Bursa Malaysia understands and acknowledges that it must have in place, a robust set of regulations and that these need to be enforced with independence and objectivity. To this end, the various regulatory functions were merged during the year and streamlined to form the Regulation Group. The Regulation Group now comprises seven divisions namely Listing, Participants Supervision, Market Surveillance, Corporate Surveillance and Investigation, Enforcement, Regulatory Policy and Advisory, and Regulatory Strategy. In light of the current global financial crisis, the Regulation Group is taking more proactive yet appropriate measures in the regulation of intermediaries, PLCs and the general market. These measures include:

• tightening supervision, and thematic financial and exposure review on high risk brokers;
• strengthening contingency plans to reduce/prevent PO/TP failure;
• continual engagement with PO/TP;
• continual review of policies/rules;
• tightening the monitoring of disclosures by PLCs in key risk areas such as default in payment and the provision of financial assistance;
• analysing the financial health of PLCs and monitoring PLC restructurings;
• managing potential abuses; and
  
• identifying and taking appropriate actions on possible market manipulation activities.