Page 36 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

Towards a more vibrant and efficient investors through a greater variety of trading
secondary market instruments and strategies to encourage trading
activity.
The SC focuses on identified levers across three key
areas: • Intraday Short Selling for all investors

1. Promoting efficiency of market structure: Previously applicable only to Proprietary Day
In order to meet the diverse needs of a wider Traders, Intraday Short Selling (IDSS) allows
range of investors, efficient market structure investors to perform day trading i.e. selling
with diverse intermediaries and instruments the securities first and then buying back later
are needed. Investors and issuers should be to close off the position within the same
able to participate in the market seamlessly. trading day. In April 2018, IDSS was extended
to all investors to provide greater flexibility for
2. Enhancing value recognition of issuers: position taking and risk management, while
Malaysia is home to a multitude of models improving liquidity of the Malaysian equity
and sizes of businesses, presenting diverse market.
value propositions to investors. Better value
recognition of listed issuers promote greater • Spurring further growth of Listed
investor interest and more trading activities. Real Estate Investment Trusts

3. Encouraging greater diversity in investor The revised guidelines released by SC in March
participation: A larger pool of diverse 2018 on listed Real Estate Investment Trusts
investors, complemented by application of a (Guidelines on Listed REITs) include measures
11
wide range of trading strategies can lead to that accord greater opportunities for REITs ,
better liquidity and vibrancy in the market. permitting among others:

While efforts are in place to address the market and – redevelopment of existing properties
its ecosystem, the macroeconomic landscape plays a and acquiring land for purposes of
key role in the vibrancy of the equity market. developing new properties to increase
their portfolio of income-generating
real estate; and
Greater diversity in trading instruments
and strategies – entering into long-term leases of real
estate.
Following the introduction of Malaysia’s first digital-
only equity broker in 2017, the industry experienced An expansion of the REIT’s permitted activities
a paradigm shift in its approach in calibrating allow for potential improvements in REIT
customer acquisition, fee structure and business performance, which will increase its
model. The focus in 2018 has been on empowering attractiveness as an investment option.

11 REITs embarking on any of these activities would be subject to investment limits, additional disclosure requirements, and in some
cases, unit holder approval.

26 | PART 1 »» ENABLING SHARED VALUE GROWTH

NEW_2-35.indd 26 2/21/19 9:26 AM