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CEO’S MESSAGE AND MANAGEMENT DISCUSSION AND ANALYSIS
SECURITIES MARKET
ENHANCING OUR MARKET STRUCTURE
We continued to work on strengthening the Securities Market infrastructure
through our activities in 2014. Our activities in this area included the following:
1. Introduction of ASEAN Post Trade Services
The ASEAN Post Trade services allows any Participating Organisation (PO)
performing outbound trades into any of the participating exchanges in the
ASEAN Trading Link to clear, settle and hold the securities listed at those
exchanges. The introduction of this new service reduces settlement risk
while streamlining the post trade procedures pertaining to outbound trades
of securities. In effect, this reduces the turnaround time while improving the
efficiency of cross-border clearing and settlement. We are the first of the
three participating exchanges to offer post trade services for all outbound
trades to our POs.
2. Closure of dormant CDS accounts
We have instituted the automatic closure of CDS accounts that have been
designated as dormant, i.e. those that contain no securities and have had no
credit or debit entries for the past seven years. The closure of the dormant
CDS accounts has optimised our use of resources and mitigated the risk of
unauthorised use of these accounts. We closed approximately two million
dormant CDS accounts in 2014.
3. Enhancing the Bursa Trade Securities 2 (BTS2) engine
Our initiatives to further enhance our trading engine saw the introduction of
additional trading and market control features, including the Good-Till-Date,
Fill-Or-Kill and Last Price Limits. These enhancements expand the trading
features available on our exchange that facilitate trading by our participants.
4. Non-Trade Matching Service
The introduction of the Non-Trade Matching Service facilitates matching for
non-trade related instructions during the book building exercise for an IPO.
This service offers a more efficient and effective method to move securities
and funds on a Delivery Versus Payment basis and expedites book entry
transfer of securities between book builders and their clients.
FROM THE BOARD OF DIRECTORS AND SENIOR MANAGEMENT
Bursa Malaysia
•
Annual Report 2014
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5. Increasing the number of securities eligible for securities borrowing
and lending
We updated the list of eligible securities for SBL increasing the size of
the pool to 227 stocks from 171 previously. The widened pool will further
increase the breadth and depth of the SBL market as well as facilitate better
price discovery through more RSS activities. Outstanding SBL loans grew to
RM2.4 billion by the end of 2014 from RM1.7 billion in 2013.
MOVING FORWARD
The Securities Market is making a strong push towards sustainability, and this is
best encapsulated in our launch of our FTSE4GOOD Bursa Malaysia ESG Index.
The ESG Index, which rates PLCs based on their adherence to internationally
benchmarked criteria, adds a new dimension to securities investing in our
market. The inclusion of the index will draw a new segment of sustainability-
conscious investors, while at the same time provide a new reference point for
our PLCs.