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Bursa Malaysia •
Annual Report 2015
Enforcement actions were also taken against 13 intermediaries (i.e.
Participating Organisations (“PO”), Trading Participants, etc.) and
24 Registered Persons for various breaches of the Business Rules,
which included market offences or trading related breaches (for which
enforcement actions were taken against 13 Dealer’s Representative (“DR”)
and one PO and three Principal Officers for supervisory breaches arising
from market offences by the DRs). In an effort to improve the conduct of
errant DRs, we also issued directives for mandatory training requirements
when misconduct showed ignorance or lack of understanding of the rules
and requirements, similar to the approach under the LR.
Arising from our enforcement actions, we noted a declining trend in some
of the breaches of our rules and in particular relating to financial reporting
obligations by our PLCs.
UTILISATION OF FINES AND TRANSFER FEES
In 2015, the functions of the Capital Market Education & Integrity Fund
(“CMEIF”) Committee were subsumed under the Regulatory and Conflicts
Committee (“RACC”). The CMEIF consists of all the fines imposed by Bursa
Malaysia and its subsidiaries and transfer fees collected (on transfers of
dealers representative from one PO to another), and does not form part
of Bursa Malaysia’s revenue. The CMEIF may only be utilised for, among
others, education/advocacy programmes with the aim of raising awareness
of our rules/requirements, and matters relating to the capital markets,
including investing knowledge for our investors and market participants.
In 2015, we conducted 64 advocacy programmes for Directors of listed
issuers, CFOs, Chief Regulatory Officer, internal auditors, company
secretaries and intermediaries. These programmes were well-received,
registering 4,676 participants representing 856 Public Listed Companies
(“PLCs”) and 48 intermediaries.
PROTECTING MARKET INTEGRITY
Bursa Malaysia’s marketplace is equipped with a number of safeguards
to protect market integrity and ensure a fair and orderly market. These
safeguards provide continuous monitoring of price movements and takes
predetermined steps to ensure that price fluctuations are managed and that
all market participants have equal opportunity to assess market conditions.
CIRCUIT BREAKER MECHANISM
Bursa Malaysia’s circuit breaker mechanism was introduced in 2002 in
line with the tenets of the Capital Master Plan I to safeguard the integrity
and stability of the marketplace. The circuit breaker effectively manages
undue and irrational volatility that could adversely impact confidence in the
marketplace.
The circuit breaker is triggered when specific thresholds are met, thereby
introducing trading halts to give the marketplace time to evaluate market
conditions.
Bursa Malaysia Circuit Breaker Trigger Levels, Conditions and Trading
Halt Durations
Trigger
Level
FBM KLCI
Decline
From
9:00
am
– before
11:15
am
From
11:15
am to
12:30
pm
From
2:30 pm
– before
3:30
pm
From
3:30 pm
to 5:00
pm
1
FBM KLCI falls by
an aggregate of
10% or more but
less than 15%
of the previous
market day's
closing index.
1 Hour
Rest of
Trading
Session
1 Hour
Rest of
Trading
Session
2
FBM KLCI falls by
an aggregate of or
to more than 15%
but less than 20%
of the previous
market day's
closing index.
1 Hour
Rest of
Trading
Session
1 Hour
Rest of
Trading
Session
3
FBM KLCI falls by
an aggregate of or
to more than 20%
of the previous
market day's
closing index.
9.00 a.m. -
12.30 p.m.
2.30 p.m. -
5.00 p.m.
Rest of Trading Day
Rest of Trading Day
MARKETPLACE REPORT:
FAIR AND ORDERLY MARKET