Asian Markets: Asian Markets: Strategy for Strategy for Internationalisation Internationalisation Presented by Mohd Ridzal Sheriff Head, Group Business Development 10 August 2005 Bursa Malaysia Berhad and its Group of Companies (“the Company”) reserve all proprietary rights to the contents of this Presentation. No part of this Presentation may be used or reproduced in any form without the Company’s prior written permission. This Presentation is provided for information purposes only. Neither the Company nor the Presenter make any warranty, express or implied, nor assume any legal liability or responsibility for the accuracy,
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Asian Markets: Strategy for Internationalisation Presented by Mohd Ridzal Sheriff Head, Group Business Development 10 August 2005 Bursa Malaysia Berhad.
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Asian Markets: Asian Markets: Strategy for InternationalisationStrategy for Internationalisation
Presented byMohd Ridzal Sheriff
Head, Group Business Development
10 August 2005
Bursa Malaysia Berhad and its Group of Companies (“the Company”) reserve all proprietary rights to the contents of this Presentation. No part of this Presentation may be used or reproduced in any form without the Company’s prior written permission. This Presentation is provided for information purposes only. Neither the Company nor the Presenter make any warranty, express or implied, nor assume any legal liability or responsibility for the accuracy, completeness or currency of the contents of this Presentation. It is your responsibility to verify any information before using or relying on it.
19801980Establishment of the Kuala Establishment of the Kuala
Lumpur Commodity Exchange (KLCE) Lumpur Commodity Exchange (KLCE) with CPO Futureswith CPO Futures
19951995The Kuala Lumpur Options and The Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) Financial Futures Exchange (KLOFFE) was established and KLSE CI Futures was established and KLSE CI Futures contract was launchedcontract was launched
19961996Malaysia Monetary Exchange (MME) Malaysia Monetary Exchange (MME) was established and the 3 Month was established and the 3 Month KLIBOR Futures was launchedKLIBOR Futures was launched
Incorporation of Malaysian Derivatives Incorporation of Malaysian Derivatives ExchangesExchanges Incorporation of Malaysian Derivatives Incorporation of Malaysian Derivatives ExchangesExchanges
Approval of the transfer of MDCH Approval of the transfer of MDCH from MDEX to Securities Clearing from MDEX to Securities Clearing Automated Network Services Automated Network Services (SCANS), a wholly owned subsidiary (SCANS), a wholly owned subsidiary of the Kuala Lumpur Stock Exchangeof the Kuala Lumpur Stock Exchange
August 2002August 2002
The sale of MDCH to SCANS was The sale of MDCH to SCANS was completedcompleted
Rationalisation of Malaysian Derivatives Rationalisation of Malaysian Derivatives Market Institutions (2)Market Institutions (2)Rationalisation of Malaysian Derivatives Rationalisation of Malaysian Derivatives Market Institutions (2)Market Institutions (2)
Bursa Malaysia Bursa Malaysia DerivativesDerivatives
Bursa Malaysia Bursa Malaysia DerivativesDerivatives
Bursa Malaysia: Transformation Bursa Malaysia: Transformation ProcessProcessBursa Malaysia: Transformation Bursa Malaysia: Transformation ProcessProcess
Breakdown of Turnover (Jan – July 2005)Breakdown of Turnover (Jan – July 2005)Breakdown of Turnover (Jan – July 2005)Breakdown of Turnover (Jan – July 2005)
Malaysian Government PoliciesMalaysian Government PoliciesMalaysian Government PoliciesMalaysian Government Policies
Overall aim to push forward and enhance Overall aim to push forward and enhance Malaysia’s competitive standing Malaysia’s competitive standing regionally and internationallyregionally and internationally
Move towards becoming a supportive Move towards becoming a supportive and effective enabler of business, by and effective enabler of business, by putting in place conducive conditions putting in place conducive conditions and creating opportunities for the and creating opportunities for the private sector to thrive private sector to thrive
Reform of government-linked companies Reform of government-linked companies (GLCs) with the aim to make them more (GLCs) with the aim to make them more performance-driven, efficiently-managed, performance-driven, efficiently-managed, commercially-focused and customer-orientedcommercially-focused and customer-oriented
Develop a strong and vibrant domestic Develop a strong and vibrant domestic capital market as a key enabler in securing capital market as a key enabler in securing healthy longterm economic growth of the healthy longterm economic growth of the country country
Move forward with deregulation and Move forward with deregulation and liberalisationliberalisation
Transforming the services sectorTransforming the services sector
Liberalisation of the Capital MarketLiberalisation of the Capital MarketLiberalisation of the Capital MarketLiberalisation of the Capital Market
The following measures were The following measures were announced by the Malaysian announced by the Malaysian Government in September 2004, and Government in September 2004, and incorporated in the 2005 Budget:incorporated in the 2005 Budget:
100% foreign ownership in 100% foreign ownership in futures broking industryfutures broking industry
Issuance of up to 5 new licences Issuance of up to 5 new licences to foreign stockbrokersto foreign stockbrokers
Issuance of up to 5 new licences Issuance of up to 5 new licences to foreign fund managersto foreign fund managers
No restrictions on the number of No restrictions on the number of foreign dealer representativesforeign dealer representatives
Liberalisation of Capital ControlsLiberalisation of Capital ControlsLiberalisation of Capital ControlsLiberalisation of Capital Controls
Bank Negara Malaysia (BNM) Bank Negara Malaysia (BNM) announced further relaxations of the announced further relaxations of the foreign exchange administration foreign exchange administration rules with effect from 1 April 2005. rules with effect from 1 April 2005. These include increased flexibility for These include increased flexibility for residents to investment aboard, residents to investment aboard, extension of credit flexibilities to extension of credit flexibilities to non-residents, and facilitation of non-residents, and facilitation of better and more efficient risk better and more efficient risk management of currency exposure management of currency exposure for both residents and non-residents.for both residents and non-residents.
These measures are part of BNM’s These measures are part of BNM’s continuous effort to further enhance continuous effort to further enhance the business environment, increase the business environment, increase efficiency of the regulatory delivery efficiency of the regulatory delivery system and promote wider risk system and promote wider risk management options. management options.
De-peg of the RinggitDe-peg of the RinggitDe-peg of the RinggitDe-peg of the Ringgit
BNM announced on 21 July 2005 that BNM announced on 21 July 2005 that the exchange rate of the Ringgit will the exchange rate of the Ringgit will be allowed to operate in a managed be allowed to operate in a managed float, with its value being determined float, with its value being determined by economic fundamentals. by economic fundamentals.
BNM will monitor the exchange rate BNM will monitor the exchange rate against a currency basket to ensure against a currency basket to ensure that the exchange rate remains close that the exchange rate remains close to its fair value. to its fair value.
Key Developments by Bursa Key Developments by Bursa MalaysiaMalaysiaKey Developments by Bursa Key Developments by Bursa MalaysiaMalaysia
Introduction of more products• Single Stock Futures (SSF)
Ensuring market integrity• Size of Clearing fund increased on 1 April 2005
Lodging of shares as margin collateral (wef January 2005)
• 50 stocks accepted as collateral by Clearing House.
Regulatory Review• Amendment to Business Rules - allow opening of omnibus a/cEducation, Marketing & Promotions•Investor roadshows and conferences i.e. Invest Malaysia 2005, Palm & Lauric Oils Conference & Exhibition
Common Trading Platform•Implementation of new derivatives trading system by Q3 2005•Open API and facilitates Direct Market Access