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CEO’S MESSAGE AND MANAGEMENT DISCUSSION AND ANALYSIS
DERIVATIVES MARKET
MARKET AND FINANCIAL HIGHLIGHTS
Trading volumes hit an all-time record high with ADC for all contracts coming in at 50,654 in 2014, registering
a 16% growth from 2013’s 43,490 contracts.
DERIVATIVES MARKET MAINLY NEUTRAL
We recorded a greater domestic and foreign institutional participation in Crude Palm Oil Futures (FCPO)
and higher average daily contracts. Total operating revenue rose marginally by 2% to RM85.8 million from
RM84.4 million in 2013.
Despite strong improvements in trading activity, derivatives trading revenue increased marginally to RM70.6
million from RM70.3 million in 2013 as a result of lower guarantee and collateral management fees. This
resulted from lower margin requirements and higher non-cash collaterals lodged as margin by participants.
OPERATING REVENUE
(RM million)
Trading Revenue
Market Data
Member Services and
Connectivity
Conference Income
70.6 70.3
7.1 6.5
1.9 2.1
6.2 5.6
2014
2013
SEGMENT PROFIT AND OPERATING MARGIN
Segment Profit (RM million)
Operating Margin (%)
ADC AND OPEN INTEREST
ADC
Open Interest (’000)
FOREIGN AND DOMESTIC PARTICIPATION
Foreign (%)
Domestic (%)
2012
2013
2014
2012
2013
2014
2012
2013
2014
40.8
44.1
42.2
39,387
36
43,490
42
50,654
39
45.7
50.3
53.3
214,065
64
196,493
58
196,413
61
DERIVATIVES TRADING FUNDAMENTALS SHOW IMPROVEMENT
The marked improvement in trading fundamentals for the Derivatives Market in 2014 is an encouraging sign. The
number of FCPO contracts struck in 2014 rose 27% to 10.2 million from 8.0 million contracts a year ago. However,
the number of FTSE Bursa Malaysia KLCI Futures (FKLI) contracts fell 19% to 2.2 million from 2.7 million in 2013.
Key achievements of the Derivatives Market in 2014 include:
• A historical month high in the traded volume of FCPO contracts which totalled 1,083,141 contracts in
September 2014. The total volume breached the one million contract mark for the first time.
• Open Interest for FCPO rose to an all-time high of 287,859 contracts on 10 September 2014. This also
led to a record high (321,077 contracts) for total open interest for all derivative products on the same
day.
FROM THE BOARD OF DIRECTORS AND SENIOR MANAGEMENT
Bursa Malaysia
•
Annual Report 2014
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