Malaysian Exchange, Bursa Malaysia, Sees 5% Increase in Operating Revenue

Malaysia’s premier securities and derivatives exchange has seen its operating revenues increase on a year on year basis, for the

Operating metrics at the Bursa Malaysia have seen strong growth as trading volumes and activity increases. The country’s main securities and derivatives trading venue saw operating revenue increase five percent to $9.6 million, for the nine months ended 30 September 2014, compared to figures reported a year earlier. The move comes on the back of continued growth among retail and institutional investors in the local bourse.

The Bursa Malaysia saw figures spike in its latest findings, not seen since 2008, the venue saw its annualised return on equity improved to 26%. In addition, the venue reported that its average daily trading value for securities market’s on-market trades increased by 6% to $641 million. The bourse also saw the average daily contracts for derivatives segment increase by 12% to 49,317 contracts largely driven by the increase in the volume of the crude palm oil futures contracts.

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Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia commented about the firm’s results, he said, “We saw higher domestic participation especially in the retail segment, which in turn contributed to the higher trading revenue on Bursa Malaysia. On the non-trading revenue side, earnings were bolstered by higher listing fees on the back of larger Initial Public Offerings and greater secondary fund raising activities.”

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Malaysia has been one of the fastest growing nations in the south east-Asian region as investors continue to explore profitability in emerging market countries.

Mr Atan continued, “2014 has been a year in which we have as an Exchange, focused on building our retail outreach efforts and programmes.

From the beginning of the year we have launched several initiatives to target the generation-Y and this is a focus that we will continue in the last quarter of 2014. In addition to our outreach programmes, we have also been working hard to broaden our offerings across all three markets. From the addition of our sixth ETF in March to the introduction of the USD Derivatives Refined Palm Olein Futures Contract in June and the release of the third tranche of Exchange Traded Bonds Sukuk in August, we have also broadened the list of allowable securities under our Restricted Short Selling and Securities Borrowing and Lending framework, raising the number of allowable securities from 171 to 218 in the same month.”

The trading venue has been expanding its foothold in the commodity derivatives segment, it joined its neighbour, the Singapore Exchange, in October 2013 by launching the countries first precious metals futures contract, complementing its existing presence in the  commodities market through its palm oil futures contracts. The firm also enhanced its position in the listed derivatives segment for ETFs, after hosting a conference on the feasibility of listings in the country.

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