Bursa Malaysia Annual Report 2014

TO OUR STAKEHOLDERS

Bursa Malaysia

•

Annual Report 2014

MARKETPLACE

As a frontline regulator and a market operator, we are

responsible for ensuring the sustainability of our capital

markets. We are committed to building a quality market

that is liquid,while offering a diverse range of competitive

products and services. We are also committed to robust

investor protection and a high standard of integrity. We

promote CG and sustainability best practices to all our

listed issuers, and require the same of ourselves.

To further facilitate CG and sustainability best

practices, we:

Introduced the Best Practice Guide for Independent

Advisers;

Conducted various advocacy programmes for directors and practitioners of

listed issuers to improve the quality of the Board of Directors, CG disclosure, risk

management and internal control practices; and

Supported industry initiatives such as The Edge Billion Ringgit Club Awards 2014,

The National Annual Corporate Report Awards (NACRA) 2014,The ACCA Malaysia

Sustainability Reporting Awards (MASRA) 2014 and The Star Business Awards

2014.

In 2014, the following initiatives were undertaken to improve the market ecosystem:

Enhancement of the Bursa Trade System 2 (BTS2) with new features and

introduction of ASEAN Post Trade services for trades executed on the ASEAN

Trading Link;

Revamp of the participantship structure for the Derivatives Market to create a

single trading right for all classes of products. We also introduced an Error Trade

Policy for the Securities Market and increased stocks available for securities

borrowing and lending (SBL);

Issuance of a new framework for opening trading and securities accounts for

retail and institutional investors through electronic mediums which offers

greater flexibility to Participating Organisations of Bursa Malaysia Securities and

Authorised Depository Agents of Bursa Malaysia Depository. We also enabled

a seamless registration process for registering individuals such as Dealer’s

Representatives, Futures Brokers Representatives and Directors of Brokers to

further improve efficiency and time to market;

Launch of the USD-denominated Refined Bleached Deodorised (RBD) Palm Olein

Futures Contract, MyETF MSCI Malaysia Exchange Traded Fund (ETF), launch of

the enhanced 5-year Malaysian bond futures (FMG5) and issuance of our third

ETBS by DanaInfra;

CORPORATE SUSTAINABILITY STATEMENT

Launch of BursaMKTPLC, an online platform developed in collaboration with our

broker partners that provides rich market information to all. The objective of the

portal is to enhance financial literacy among retail investors with a particular

focus on youth. To engage with the youth, we initiated online games, such as

Fantasy FTBL. TRADR Challenge and The Great Bursa Bull Hunt;

Holding of our inaugural Gold and Precious Metals Price Outlook Symposium for

retail investors,and our first ETFs and SBL Conference to share insights into global

practices and trends.We also organised other programmes including Spotlight on

Malaysia, Invest Malaysia, Palm and Lauric Oils Conference and Exhibition Price

Outlook, Workshop@Bursa, Derivatives Day, Breakfast with BMD and a Dealer

Engagement Session. Moreover, we supported various industry initiatives such

as the IFN Asia Forum 2014 and the World Islamic Banking Conference – Asia

Summit 2014.

Launch of the FTSE4Good Bursa Malaysia (F4GBM) Index,our first Environmental,

Social and Governance (ESG) Index, after a series of engagements with our listed

issuers to educate them on ESG and FTSE’s methodology.

To strengthen our sustainability practices, we:

Revised our Guidelines for Handling Conflict of Interest and the Checklist,

amended our Contract Management Guidelines and issued a Capital Market

Education and Integrity Fund Authority and Guidelines Manual;

Rolled out Phase 1 of the Customer Relationship Management System to

establish a new process for efficient stakeholder engagement and management;

and

Continued to report on our sustainability practices in our standalone Sustainability