Bursa Malaysia
From MarketsWiki
| Bursa Malaysia | |
| |
| Founded | 1973 |
|---|---|
| Headquarters | Kuala Lumpur, Malaysia |
| Key People | Dato' Yusli bin Mohamed Yusoff, CEO; Tun Mohamed Dzaiddin bin Haji Abdullah, chairman |
| Products | Cash equities, bond futures, equity index futures and options, single-stock futures and palm oil futures |
| Web site | www.klse.com.my |
Bursa Malaysia operates the Kuala Lumpur Stock Exchange (KLSE), and is an integrated electronic exchange offering trading, clearing and settlement of cash equities and derivatives, including Palm Oil Futures. The company demutualized in 2004 and listed on its own main board in 2005.
Contents |
History and Ownership
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Bursa Malaysia was created in its current form in 1973 when the end of currency interchangeability between Malaysia and Singapore saw the separation of the Stock Exchange of Malaysia and Singapore into the KLSE and the Stock Exchange of Singapore, which later became Singapore Exchange Limited (SGX).
Its origins lie in the Singapore Stockbrokers' Association, established in 1930, and re-registered as the Malayan Stockbrokers' Association in 1937. The Malayan Stock Exchange was established in 1960, with trading floors in Singapore and Kuala Lumpur linked by telephone.
The Stock Exchange of Malaysia was created in 1964, changing its name to the Stock Exchange of Malaysia and Singapore in 1965 when Singapore seceded from its neighbor, and then to the KLSE in 1973.
The KLSE became a limited company on December 14, 1976 and changed its name to Bursa Malaysia Berhad following demutualization on April 14, 2004, listing on its own main board on March 18, 2005[1].
Government entities retain 38 per cent of the company, with the Capital Markets Development Fund owning 19.3 per cent and the finance ministry a further 14.5 per cent. The exchange said in December 2007 that it was in preliminary talks with the Chicago Mercantile Exchange about an alliance, though this is not expected to include an equity stake[2].
Structure and Regulation
The securities exchange unit lists more than 1,000 companies on its main bourse, the second board for mid-caps and the tech-focused Mesdaq market. The securities business accounted for 56 per cent of the group’s S$262.1m operating revenues in calendar 2006, with derivatives business contributing 12.6 per cent.
The company restructured at the start of 2008 into five business areas: Business and Market Development, led by Encik Omar Merican, COO; Regulations, led by Selvarany Rasiah, chief regulatory officer; Market Operations, overseen by Devanesan Evanson, chief of market operations; Corporate Services, led by Puan Nadzirah Abdul Rashidin, CFO; and Technology and Systems, headed by Yew Kim, chief technology officer[3].
Equities are traded from 9.00am-12.30pm and 2.30pm-5pm, while hours for the derivatives business are 8.45am-12.45pm and 2.30pm-5.15pm.
The company is regulated by the Securities Commission Malaysia. The company also operates an offshore center, the Labuan International Financial Exchange (LFX), created in November 2000.
Product Development
Futures and options on the Kuala Lumpur Composite Index are the largest part of the derivatives complex, which also includes futures on crude palm oil, crude palm oil kernel, 3,5 and 10-year MGS Futures and three-month KLIBOR futures. Single-stock futures were launched in April 2006 which, like the crude palm oil futures, are Shariah-compliant.
Crude Palm Oil Futures were launched in October 1990, with the crude kernel palm oil contract following in February 2004. A US dollar-denominated palm oil contract is expected to be launched in Jaunary 2008[4].
References
- ↑ Official History. Bursa Malaysia. Retrieved on December 20, 2007.
- ↑ Press Release. Bursa Malaysia. Retrieved on December 20, 2007.
- ↑ Press Release. KLSE. Retrieved on January 16, 2008.
- ↑ Report. Reuters. Retrieved on December 20, 2007.
