Bursa Malaysia Annual Report 2015

FINANCIAL REPORTS

192

Bursa Malaysia •

Annual Report 2015

NOTES TO THE

FINANCIAL STATEMENTS

31 DECEMBER 2015

40. Segment information (cont’d.)

(b) Market segments

The four major market segments of the Group are as follows:

(i) The securities market mainly comprises the provision and operation of the listing, trading, clearing, depository services and provision and

dissemination of information relating to equity securities quoted on the securities exchange.

(ii) The derivatives market mainly comprises the provision and operation of the trading, clearing, depository services and provision and

dissemination of information relating to derivative products quoted on the derivatives exchange.

(iii) The exchange holding business refers to the operation of the Company which functions as an investment holding company.

(iv) Others mainly comprises the provision of a Sha’riah compliant commodity trading platform, a reporting platform for bond traders and the

provision of an exchange for the offshore market.

(c) Allocation basis and transfer pricing

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable

basis. Unallocated items comprise mainly corporate assets and liabilities, overheads and income tax expenses.

Management monitors the operating results of its market segments separately for the purpose of making decisions about resource allocation and

performance assessment.

Transfer prices between the market segments are set on an arm’s length basis in a manner similar to transactions with third parties.