Page 40 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

trading in both the FM70 and FTSE Bursa In 2018, 11 proprietary traders and 12 trading
Malaysia Kuala Lumpur Composite Index specialists registered as part of this programme. In
Futures (FKLI) contracts. This saw 173,132 the most part of 2018, registered participants were
contracts traded and 327 open interest as at on the whole, trading above their 2017 average and
end 2018. as a result provided a buffer in times of low Average
Daily Value (ADV).

Greater diversity in investors
COLLABORATING FOR GROWTH AND
The Malaysian securities market has traditionally INNOVATION
seen a high concentration of long-only investors
i.e. investors that take a buy position in the market. To accelerate growth and innovation within the
In addition, Malaysia suffers from an ageing retail capital market, the SC has put in place several
trading population, with many above 40 years old. enablers to support the capital market community.
These efforts are centred around five key pillars:
To improve market liquidity, an infusion of other thought leadership, co-operation with global
investor groups is needed. In line with this, the SC regulators, international integration and ASEAN
has focused its efforts in 2018 on bringing new
investors and liquidity providers to the market.

Diagram 14
• Incentivising new investors to join
the market Five key pillars for growth and innovation
Thought Leadership
From March to August 2018, exchange Thought leadership events held in collaboration
trading and clearing fees were waived for with global and regional committees enable industry
first-time individual investors with new stakeholders and regulators to identify global trends,
Central Depository System (CDS) accounts. growth opportunities and/or risks.
This is to rejuvenate the pool of investors, Regulatory Co-operation
especially those from the younger
demography. It resulted in bringing 11,083 Facilitates sharing of relevant expertise, insights
new investors into the market, with over and support to develop the Malaysian market, and
contribute to overall regional or global development.
RM1.2 billion value traded over the six months.
International Integration and ASEAN
Connectivity
• Incentivising liquidity providers
Greater regional connectivity through improved market
Incentive programmes were implemented by access, cross-border product offering and increased
Bursa Malaysia targeting two categories of mobility of licensed persons.
investors: Capacity Building

– Trading specialists who are eligible high Capacity building hubs and programmes serve to
volume individual traders sponsored by develop skills and knowledge of both regulators and
industry players.
brokers; and
– Proprietary traders (both non-PO and PO) Engagement
Opportunities for regulators and industry stakeholders to
To enjoy a reduction in clearing fees, these engage, dialogue and work towards greater alignment
investor groups are required to trade volumes of policies and industry initiatives on development and
exceeding a defined target. innovation.

30 | PART 1 »» ENABLING SHARED VALUE GROWTH

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