Bursa Malaysia Annual Report 2015

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Bursa Malaysia •

Annual Report 2015

MARKETPLACE REPORT:

FAIR AND ORDERLY MARKET

Our markets continue to display high levels of transparency to facilitate

informed investments. We have not observed any unusual activities/trends

that threaten market integrity for the year under review.

DEVELOPMENT OF THE RULES FRAMEWORK

We continued to enhance our rules framework to build a market of quality,

strengthen investor protection and ensure that our rules remained current

and effective. In 2015, we issued several rule changes governing the listed

issuers and our intermediaries. The key changes included:

a. Changes to enhance business efficacy and efficiency for listed issuers

as well as to enhance the attractiveness of the ACE Market as a listing

destination.

b. Changes to promote sustainability practices and reporting among our

listed issuers.

c. Changes to promote certainty in trading and minimise disruptions (i.e.

changes to give effect to Bursa Malaysia’s error trade policy).

d. Changes to achieve compliance or consistency with changes to the

law and Securities Commission guidelines that came into effect or

were amended during the year (e.g. the changes in relation to the

Financial Services Act 2013 and changes consequential to the new

Goods and Services Tax Act 2014).

Bursa Malaysia has an obligation to ensure that our markets operate in a fair and

orderly manner at all times. These are built on strong fundamentals, backed by

robust regulatory frameworks and approaches, and supported by cutting-edge

technology to ensure effective and efficient operation. Our listed issuers and

intermediaries have shown high level of adherence to our rules, with the latter

also being sufficiently capitalised and adhering to high standards of business

conduct and prudential standards, providing adequate levels of investor

protection. The Exchange has also put in place various market safeguards to

protect the integrity and stability of the marketplace. These market features are

designed in line with best international practices.

We continued to apply a robust process in developing our rules framework

to ensure our rule changes achieved the intended purposes. In this respect,

we adopted a consultative, well-considered and balanced approach in

arriving at final rule changes. Major rule changes, in particular, underwent

a comprehensive consultation process to obtain feedback from the relevant

industry participants, key stakeholders and the public before being

finalised and issued. In 2015, we issued two public consultation papers

on proposed changes to the Listing Requirements (“LR”) to seek feedback

on sustainability reporting, as well as disclosure and corporate governance

requirements and post-listing disclosure obligations for mineral, oil and gas

listed issuers.

EFFICIENT CAPITAL RAISING FRAMEWORK

Our time-to-market for secondary capital raising remained efficient and

comparable to other regional markets. To facilitate further growth and

innovation in our market, we continued to provide a conducive environment

for listed issuers to have access to and raise capital efficiently. Capital

raising through the secondary issuance of securities remained active in

2015, with total funds raised remaining relatively high at RM17.1 billion

(2014: RM18.4 billion) despite the volatility and challenges in the capital

market.