Date post: | 16-Jan-2016 |
Category: |
Documents |
Upload: | clarence-hill |
View: | 215 times |
Download: | 0 times |
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.
2FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
Incorporation of Malaysian Incorporation of Malaysian Derivatives Exchanges Derivatives Exchanges
Rationalisation of Malaysian Rationalisation of Malaysian Derivatives Market InstitutionsDerivatives Market Institutions
Bursa Malaysia: Transformation Bursa Malaysia: Transformation ProcessProcess
Bursa Malaysia: A Single ExchangeBursa Malaysia: A Single Exchange
Market StatisticsMarket Statistics
Malaysian Government PoliciesMalaysian Government Policies
Recent Developments in MalaysiaRecent Developments in Malaysia
Key Developments by Bursa MalaysiaKey Developments by Bursa Malaysia
ContentsContentsContentsContents
3FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
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
4FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
19981998
KLCE merged with MME to form KLCE merged with MME to form COMMEXCOMMEX
19991999
KLOFFE purchased by the Kuala KLOFFE purchased by the Kuala Lumpur Stock ExchangeLumpur Stock Exchange
June 2001June 2001
Incorporation of MDEX – Merger of Incorporation of MDEX – Merger of KLOFFE and COMMEXKLOFFE and COMMEX
Rationalisation of Malaysian Derivatives Rationalisation of Malaysian Derivatives Market Institutions (1)Market Institutions (1)Rationalisation of Malaysian Derivatives Rationalisation of Malaysian Derivatives Market Institutions (1)Market Institutions (1)
5FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
June 2002June 2002
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)
6FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
•Company limited by guarantee
•Operating stock exchange
(64 Member Companies)
•Company limited by shares
•Exchange holding company
Completed:
5 January 2004
• Company limited by shares
• Derivatives exchange
•Business Rules
100%
DemutualisationDemutualisation
Previous Previous StructureStructure
Previous Previous StructureStructure
Present StructurePresent Structure Present StructurePresent Structure
ListingListing
Listed:
18 March 2005
Bursa Malaysia Bursa Malaysia DerivativesDerivatives
Bursa Malaysia Bursa Malaysia DerivativesDerivatives
Bursa Malaysia: Transformation Bursa Malaysia: Transformation ProcessProcessBursa Malaysia: Transformation Bursa Malaysia: Transformation ProcessProcess
7FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
BURSA MALAYSIA BERHADBURSA MALAYSIA BERHAD
Equities MarketEquities Market
Main BoardSecond Board
Companieswith trackrecord
Main BoardSecond Board
Companieswith trackrecord
MESDAQMarket
Growth &TechnologyCompanies
MESDAQMarket
Growth &TechnologyCompanies
Bursa Malaysia Securities BhdBursa Malaysia Securities Bhd
Derivatives MarketDerivatives Market
Bursa Malaysia Derivatives BhdBursa Malaysia Derivatives Bhd
Offshore MarketOffshore Market
Labuan InternationalFinancial Exchange (LFX)
Labuan InternationalFinancial Exchange (LFX)
Clearing & DepositoryClearing & Depository
Citibank, Deutsche BankCitibank, Deutsche Bank
Integrated Clearing HouseIntegrated Clearing House
Bursa MalaysiaSecuritiesClearing
Bursa MalaysiaSecuritiesClearing
Bursa MalaysiaDerivatives
Clearing
Bursa MalaysiaDerivatives
Clearing
Common DepositoryCommon Depository
Bursa Malaysia DepositoryBursa Malaysia Depository
Bursa Malaysia: A Single ExchangeBursa Malaysia: A Single ExchangeBursa Malaysia: A Single ExchangeBursa Malaysia: A Single Exchange
8FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
Derivatives Products Listed on BursaDerivatives Products Listed on Bursa Derivatives Products Listed on BursaDerivatives Products Listed on Bursa
Bursa offers equity, financial and Bursa offers equity, financial and commodity derivatives for trading:commodity derivatives for trading:
Crude Palm Oil Futures (FCPO)Crude Palm Oil Futures (FCPO)
Crude Palm Kernel Oil Futures (FPKO)Crude Palm Kernel Oil Futures (FPKO)
Kuala Lumpur Composite Index Futures Kuala Lumpur Composite Index Futures (FKLI)(FKLI)
Kuala Lumpur Composite Index Options Kuala Lumpur Composite Index Options (OKLI)(OKLI)
3-Month Kuala Lumpur Interbank Offered 3-Month Kuala Lumpur Interbank Offered Rate Interest Rate Futures (FKB3)Rate Interest Rate Futures (FKB3)
Three-Year Malaysian Government Three-Year Malaysian Government Securities Futures (FMG3)Securities Futures (FMG3)
Five-Year Malaysian Government Five-Year Malaysian Government Securities Futures (FMG5)Securities Futures (FMG5)
Ten-Year Malaysian Government Ten-Year Malaysian Government Securities Futures (FMGA)Securities Futures (FMGA)
9FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
Annual Turnover & OI : 1995 – 2005 (May)Annual Turnover & OI : 1995 – 2005 (May)Annual Turnover & OI : 1995 – 2005 (May)Annual Turnover & OI : 1995 – 2005 (May)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Year
Turn
ove
r
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Open p
osi
tion
Volume OP
10FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
Breakdown of Turnover (Jan – July 2005)Breakdown of Turnover (Jan – July 2005)Breakdown of Turnover (Jan – July 2005)Breakdown of Turnover (Jan – July 2005)
FKLI
52.98%
FMG5
0.88%
FCPO
41.75%
FKB3
4.16%
FMG3
0.23%
FKLI FMG5 FCPO FKB3 FMG3
11FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
0
20
40
60
80
100
120
140
160
180
200
Jan
-96
Jun
-96
No
v-9
6
Ap
r-9
7
Se
p-9
7
Fe
b-9
8
Jul-9
8
De
c-9
8
Ma
y-9
9
Oct
-99
Ma
r-0
0
Au
g-0
0
Jan
-01
Jun
-01
No
v-0
1
Ap
r-0
2
Se
p-0
2
Fe
b-0
3
Jul-0
3
De
c-0
3
Ma
y-0
4
Oct
-04
Ma
r-0
5
Volu
me
(‘000
)
0
4
8
12
16
20
24
28
32
36
40
Ope
n Po
sitio
n(‘0
00)
Volume Open Position
Note: Migration to Electronic Trading on 29 December 2001
FCPO Volume & OIFCPO Volume & OI FCPO Volume & OIFCPO Volume & OI
12FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
Record Monthly Volume : 177,319 contracts (October 2003)Record Daily Volume : 14,508 contracts (21 October 2003)
Record Daily Open Interest : 37,887 contracts (27 September 2004)
Breakdown of FCPO Market Breakdown of FCPO Market Participation Participation (Jan – July 2005)(Jan – July 2005)
Breakdown of FCPO Market Breakdown of FCPO Market Participation Participation (Jan – July 2005)(Jan – July 2005)
33002
43441
4440
34180
5701560
0 10,000 20,000 30,000 40,000 50,000 60,000
No. of contracts
Foreign Institution
Local Institution
Foreign Retail
Local Retail
Locals
Proprietary
Part
icip
ants
(<1%)
(33.12%)
(19.86%)
(2.58%)
(25.24%)
(19.17%)
13FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
FKLI Volume & OIFKLI Volume & OI FKLI Volume & OIFKLI Volume & OI
Figure 1. KLCI Futures
010,00020,00030,00040,00050,00060,00070,00080,00090,000
100,000110,000120,000130,000140,000
Dec-9
5Ma
y-96
Oct-9
6Ma
r-97
Aug-
97Ja
n-98
Jun-
98No
v-98
Apr-9
9Se
p-99
Feb-
00Ju
l-00
Dec-0
0Ma
y-01
Oct-0
1Ma
r-02
Aug-
02Ja
n-03
Jun-
03No
v-03
Apr-0
4Se
p-04
Feb-
05
Volu
me
0
2,000
4,0006,000
8,000
10,000
12,000
14,00016,000
18,000
20,000
Ope
n Po
sitio
n
Volume Open Position
Note: FKLI was downsized on 19 September 2003
14FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
Record Monthly Volume
Record Daily Volume
Record Daily Open Interest
Breakdown of FKLI Market Breakdown of FKLI Market Participation Participation (Jan – July 2005)(Jan – July 2005)
Breakdown of FKLI Market Breakdown of FKLI Market Participation Participation (Jan – July 2005)(Jan – July 2005)
: 136,870 contracts (May 2004)
: 16,169 contracts (26 July 2005)
: 33,243 contracts (26 June 1998)
73779
8283
1099
2823
9439037974
112
0 20,000 40,000 60,000 80,000 100,000
No. of contracts
Foreign Institution
Local Institution
Local Corporation
Foreign Retail
Local Retail
Locals
ProprietaryPa
rtic
ipan
ts(<1%)
(17.38%)
(43.21%)
(1.29%)
(<1%)
(3.79%)
(33.77%)
15FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
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
16FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
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
17FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
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.
18FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
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.
19FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
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
20FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
Q & AQ & A
21FIA Aisia Derivatives ConferenceFIA Aisia Derivatives Conference
Derivatives MarketingDerivatives MarketingBursa Malaysia BhdBursa Malaysia Bhd
1010thth Floor, Exchange Square Floor, Exchange Square Bukit KewanganBukit Kewangan
www.bursamalaysia.comwww.bursamalaysia.com
[email protected]@bursamalaysia.com
+ 603 2034 7188+ 603 2034 7188