Page 39 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

Diagram 13
Objective of BRIDGe

Brokerage Industry Digitisation Group (BRIDGe)

...aims to facilitate collaboration among regulators, the exchange, brokers, banks and other
stakeholders with the objective of accelerating the digitisation of Malaysia’s stockbroking
industry.

Three working groups were created to achieve this objective

$

Post Trade &
Digital Onboarding Corporate Actions Settlement

Enable fully digital Automate and digitise Provide seamless and
customer onboarding to corporate actions to enhance efficient post trade and
enhance user experience transparency and efficiency settlement experience

Greater value recognition of mid and • Three-year stamp duty waiver on the
small cap companies trading of shares in mid and small
cap companies
In 2017, the MidS Research Scheme with the
objective of creating better value recognition of mid Applicable to 351 companies with a market
and small cap companies was operationalised. capitalisation of between RM200 million to
Additionally, Government-linked Investment RM2 billion, the stamp duty waiver will lower
Companies had committed to direct investments of the cost of trading in this segment.
up to RM2 billion to this segment.
• Mini FTSE Bursa Malaysia Mid 70
2018 saw additional efforts targeted at enhancing Index Futures (FM70)
trading activities for the mid and small cap
companies – this includes lowering the trading cost Launched in August 2018, the cash settled
for this segment and enabling opportunities to gain futures contract is based on the FTSE Bursa
exposure or hedge with a new derivatives contract Malaysia Mid 70 Index. Designed to be a
based on the FTSE Bursa Malaysia Mid 70 Index. smaller contract in both size and value, the
FM70 exhibits greater volatility inherent in the
• Greater MidS research coverage underlying mid-cap stocks.

The number of MidS research reports has The introduction of FM70 contract enables
increased 3 times, from 421 reports in 2017 investors to hedge or gain exposure into the
12
to 1,259 in 2018, covering 94 companies. FTSE Bursa Malaysia Top 100 stocks when

12 The MidS research scheme was operationalised in May 2017.

PART 1 »» ENABLING SHARED VALUE GROWTH | 29

NEW_2-35.indd 29 2/21/19 9:26 AM