Bursa Company

Bursa Company: A Comprehensive Overview

1. Company Overview

Founding Date and Background

Bursa Malaysia Berhad, commonly referred to as Bursa, was founded in 1964 as the Kuala Lumpur Stock Exchange. It has since evolved into a fully integrated exchange offering a wide range of exchange-related services, including trading, clearing, settlement, and depository services. Bursa Malaysia plays a crucial role in the Malaysian financial landscape, facilitating capital market activities and fostering economic growth.

Parent Company/Ownership Structure

Bursa Malaysia is a publicly listed company on its own exchange, Bursa Malaysia Securities Berhad. The ownership structure consists of various institutional and retail investors, with significant stakes held by government-linked investment companies and foreign institutional investors.

Headquarters Location

The headquarters of Bursa Malaysia is located at Exchange Square, Bukit Kewangan, Kuala Lumpur, Malaysia. This strategic location positions the company at the heart of Malaysia's financial district, facilitating easy access for investors and stakeholders.

Global Business Scope

Bursa Malaysia operates primarily within the Malaysian market but has expanded its services to cater to international investors. The exchange offers a diverse range of products, including equities, derivatives, and Islamic financial products, appealing to a broad spectrum of investors globally.

Main Regulatory Bodies

Bursa Malaysia operates under the supervision of several regulatory bodies, including:

• The Securities Commission Malaysia (SC)
• Bank Negara Malaysia (BNM)

  These entities ensure that Bursa Malaysia adheres to the necessary regulations and maintains market integrity.

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2. Company History and Development

Key Milestones

Bursa Malaysia has achieved several significant milestones since its inception:

• 1964: Established as the Kuala Lumpur Stock Exchange.
• 1973: Became the Kuala Lumpur Stock Exchange Berhad.
• 2004: Demutualization and rebranding to Bursa Malaysia Berhad.
• 2005: Listed on its own exchange.
• 2012: Launched the ASEAN Trading Link, connecting with other ASEAN exchanges.

Business Expansion Journey

Bursa Malaysia has expanded its offerings over the years to include a multi-asset exchange that facilitates trading in securities, derivatives, and Islamic finance products. The exchange has also introduced various innovative platforms to enhance trading efficiency and accessibility for investors.

Customer Base Growth

The customer base of Bursa Malaysia has grown significantly, with retail investor participation increasing to approximately 22% in the securities market and 17% in the derivatives market as of Q1 2024. The exchange has successfully attracted both local and international investors, contributing to its robust trading volume.

Platform Development History

Bursa Malaysia has invested in technology to enhance its trading platforms. The introduction of electronic trading systems and online trading facilities has made it easier for investors to access the market. Additionally, Bursa has developed specialized platforms for Islamic finance, catering to the growing demand for Sharia-compliant investment options.

Important Awards or Recognitions Received

Bursa Malaysia has received numerous accolades for its performance and contributions to the capital market, including recognition for its excellence in customer service and innovation in financial products. The exchange has been awarded titles such as "Best Overall Participating Organisation" by Bursa Malaysia for several consecutive years.

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3. Trading Services Offered

Forex Trading Options

Bursa Malaysia offers a limited range of Forex trading options, focusing primarily on major currency pairs. The exchange provides access to trading in multiple currencies, catering to both retail and institutional investors.

Stock Trading Options

Bursa Malaysia is well-known for its extensive stock trading options, featuring a diverse array of listed companies across various sectors. Investors can trade shares of Malaysian companies, benefiting from the country's economic growth.

CFD Trading Products

Bursa Malaysia has introduced Contracts for Difference (CFDs), enabling traders to speculate on price movements of various underlying assets without owning the assets directly. This product offers flexibility and leverage for traders looking to capitalize on market fluctuations.

Other Financial Instruments

In addition to stocks and CFDs, Bursa Malaysia provides access to various financial instruments, including:

• Cryptocurrencies: While not directly traded on the exchange, Bursa has shown interest in integrating cryptocurrency trading options in the future.
• Commodities: The exchange facilitates trading in futures contracts, particularly in crude palm oil, which is a significant commodity in Malaysia.

Special Services or Unique Advantages

Bursa Malaysia offers several unique advantages, including:

• A dedicated platform for Islamic finance, providing Sharia-compliant investment options.
• Advanced trading technology that enables efficient order execution and market access.
• Comprehensive investor education programs to enhance market participation.

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4. Regulatory and Legal Background

Detailed Regulatory Information

Bursa Malaysia operates under the regulatory oversight of:

• Securities Commission Malaysia (SC): Responsible for regulating the capital market.
• Bank Negara Malaysia (BNM): Oversees monetary policy and financial stability.

Legal Entity Structure by Region

Bursa Malaysia is structured as a public limited company, operating primarily within Malaysia. The exchange has established subsidiaries to manage specific areas such as derivatives trading and Islamic finance.

Client Fund Protection Measures

Bursa Malaysia implements stringent measures to protect client funds, including:

• Segregation of client funds from the companys operational funds.
• Participation in the Investor Compensation Fund, which provides protection to investors in case of broker default.

Countries/Regions Served

While Bursa Malaysia primarily serves the Malaysian market, it has attracted international investors from various regions, including Asia, Europe, and North America, seeking exposure to Malaysian assets.

Compliance History

Bursa Malaysia has maintained a strong compliance record, adhering to the regulations set forth by its governing bodies. The exchange continuously updates its practices to align with global standards and enhance market integrity.

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5. Competitive Landscape

Main Competitors

Bursa Malaysia faces competition from several key players in the region, including:

• Singapore Exchange (SGX): A major competitor offering a wide range of financial products.
• Hong Kong Stock Exchange (HKEX): Known for its significant market capitalization and diverse offerings.
• Thailand Stock Exchange (SET): Competes for regional investment flows and retail participation.

Positioning in the Industry

Bursa Malaysia positions itself as a leading exchange in Southeast Asia, focusing on innovation and customer service. The exchange aims to enhance liquidity and attract a diverse range of investors through its comprehensive product offerings.

Market Differentiation Factors

Bursa Malaysia differentiates itself through:

• A robust platform for Islamic finance, catering to the growing demand for Sharia-compliant investments.
• Advanced trading technology that supports high-frequency trading and algorithmic trading strategies.
• A commitment to investor education and market transparency, fostering confidence among participants.

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Bursa Malaysia continues to evolve, adapting to the changing landscape of global finance while maintaining its commitment to regulatory compliance and customer satisfaction. As it looks to the future, the exchange aims to expand its offerings and enhance its position as a premier financial marketplace in the region.

For more information on Bursa Malaysia's services and offerings, learn more.