Presentation on theme: "Investor Education The Bursa Malaysia Story OIC Members’ State"— Presentation transcript:
1 Investor Education The Bursa Malaysia Story OIC Members’ State Stock Exchanges ForumInvestor EducationThe Bursa Malaysia Story_________________________________________________Sairana Mohd SaadHead of Marketing & Communications,Islamic Markets
2 Content Brief Overview on Bursa Malaysia Business Lines Market Education & Engagements4. Islamic MarketsSukuk ListingsBursa Suq Al-Sila’5. Marketing Communication Plan
3 Who is Bursa Malaysia Berhad (1818) ? The sole integrated exchange in Malaysia offering a complete range of services through our subsidiaries.This includes exchange-related services e.g.:TradingClearingSettlementDepository ServicesInformation services
4 Bursa Malaysia Exchanges Clearing, Settlement & Depository Islamic Market BusinessBursa Malaysia Securities BerhadBursa Malaysia Securities Clearing Sdn BhdBursa Malaysia Islamic Services Sdn BhdBursa Malaysia Derivatives BerhadBursa Malaysia Derivatives Clearing BerhadServices ProvidedBursa Malaysia Bonds Sdn BhdLabuan International Financial ExchangeBursa Malaysia Depository Sdn BhdBursa Malaysia Information Sdn Bhd
5 Enhance the QUALITY OF THE MARKET Our Regulatory Role – maintain market integrityREGULATORY KEY GOALS FOR 2010BACKGROUND FOR THE REGULATORY PLAN 2009…ObjectiveEnhance the QUALITY OF THE MARKETGoals and Strategic ObjectivesHigh standards of conduct by PLCs & participantsInvestor protectionEfficient & effective regulationEnhancing the standards of corporate governance among listed companiesImproving the quality of PLCsStrategic thrustDerivatives1H072H071H082H081H09Daily Average Contracts (RM mn)26,576NA25,42124,35326,779Enhancing the effectiveness of enforcementImproving standards of disclosureDerivativesQ208Q308Q408Q109Q209Daily Average Contracts20,94524,52224,16923,86229,423Open Position121,775135,566155,560147,771117,030Promoting high standards of business conduct among market participantsElevating the level of education and awareness in the industry5
6 Core Business Lines SECURITIES MARKET DERIVATIVES MARKET Drive Liquidity & VibrancyEnhance Pre and Post Trade Equities Infrastructure andShares, REITs, ETFs, WarrantsDERIVATIVES MARKETRestructure InfrastructureDevelop Existing BusinessLeverage On Existing Strategic PartnershipCommodity, Equity, FinancialISLAMIC MARKETSInternationalize Islamic Markets Products and CapabilitiesAttract International Investors & IssuersSukuk listing, Islamic Equities, Islamic REITs, Islamic ETFs
7 Market Education & Engagements SecuritiesInvest Malaysia & Market Chat (Malaysia)It is a worldwide roadshow with brokers.Market chat is conducted for 6 months covering 22 towns, 80 talks in total.Reverse roadshow to Europe, US and key Asian countries.DerivativesPOC & Talk Futures (Malaysia)
8 Market Education & Engagements (cont’d) Islamic MarketsEducational Series (ETFs)Websites & HyperlinksTraining on Tawarruq & Commodity MurabahahMedia interviewsSpeaking EngagementsPublicationsMIFC RoadshowsSponsorshipEvents (Sukuk listing) e.g. IDB SukukAdvertisingIslamic Finance Forum i.e. in Korea with KRXNewsletters i.e. Bursa, SC and MIFC
9 Islamic Markets How we created our story… Profiling Transparency Global financial crisisInvestors become more risk averseLoss of confidence and trusts to the marketsThey changed their Investment objectives from…Capital AppreciationTotal ReturnCapital PreservationCurrent Income&&Seeking investment opportunities offering…ProfilingTransparencyGood GovernanceBy end of 2009, Bursa Malaysia become the world’s largest Sukuk listing destination with USD 17.6 billion of programme value listed through 10 issuers.
10 Bursa Malaysia Sukuk listings @ August 2010 The pitch was simple…The world was experiencing a financial crisis.Investors needed to mitigate risk.Regulation needed to enhance good governance and transparency.To date, Bursa Malaysia managed to attract 3 foreign Sukuk issuers i.e. GE, IDB, Nomura.No.IssuerValue (USD bil)1Cagamas MBS (RM)1,311,450,5002PETRONAS Global Sukuk Ltd. (USD)1,500,000,0003G.E Capital Sukuk Limited (USD)500,000,0004CIMB Islamic Bank Berhad (RM)637,400,0005Rafflesia Capital Limited (USD)750,000,0006Cherating Capital Ltd. (USD)850,000,0007Paka Capital Ltd. (USD)550,000,0008Khazanah Nasional Bhd (RM)6,374,000,0009Danga Capital Bhd (RM)3,187,000,00010Rantau Abang Capital Bhd (RM)11Sime Darby Berhad (RM)1,434,150,000121Malaysia Sukuk Global Berhad (USD)1,250,000,00013Nomura Sukuk Limited (USD)100,000,00014Tadamun Services Berhad (RM)318,700,000Grand Total (USD)21,949,700,500Bursa Malaysia Sukuk August 2010% of Total Listings72.4 %Global Ranking1
11 Bursa Suq Al-Sila’ (BSAS) The pitch was…Facilitating Liquidity ManagementFacts on BSASLaunched in August 2009World’s first Shari’ah-compliant commodity trading platformExchange-regulated platformFrom 9 to 23 trading participantsLargest daily traded: RM 2.4 billion‘Most Outstanding Islamic Finance Product’ – KLIFF 2009‘Market Innovation’ by Asset Triple A Awards 2010‘Islamic Innovation Award’ by MOSTI (Ministry of Science, Technology & Innovation)Required intensive investor education through speaking engagements by Global Head, and our Shari’ah AdviserCross border financing through Crude Palm OilUsing Tawarruq conceptInternationally accepted by Shari’ah scholars
12 Foreign Membership Admission Foreign Membership Shari’ah Approvals Bursa Suq Al-Sila’ (cont’d)There were indeed many disputes on the issue of acceptance – until Al-Rajhi came on board.Other GCC Banks also have followed suit.Foreign Membership AdmissionSaudi Hollandi BankForeign Membership Shari’ah Approvals1. Al Rajhi Bank2. Alinma Bank3. Bank AlBiladArticles were published to increase awareness and dismiss the perception that it adopts an “Organized Tawarruq” concept
13 A Regulated Commodity Trading Platform 3 Shari’ah scholars involved: Bursa Suq Al-Sila’ (cont’d)January this year, in Bahrain, we held a Shari'ah panel discussion entitled…Shaping The Islamic Liquidity Management Landscape Introducing Bursa Suq Al-Sila’ :A Regulated Commodity Trading Platform3 Shari’ah scholars involved:Sheikh Nizam YaqubyDr. Mohamed Ali ElgariDr. Aznan Hasan
14 Marketing Communication Plan Advertisement in Islamic Finance AsiaArticlesPublications / WebsitesEventsSponsorship (local & international)Speaking Engagements
18 Articles 2. 3. 4. 5. 6. 7. No. Name of Article Year 1. Malaysian Success Stories in Islamic Finance20102.Euromoney Sukuk Book:Chapter 1: Overview of Sukuk MarketChapter 7: Sukuk Listing3.Enhancing Appeal of Shari’ah-compliant Products – thorough Product Diversity and Heightened Governance & Transparency4.Introducing New Instruments and Developments in Islamic Finance5.What Makes Malaysia Attractive in terms of Islamic Finance20096.Why Tawarruq Needs to Stay(Strengthen the practice, not rather prohibiting it)7.Bursa Malaysia’s Role in Developing Malaysian Islamic Capital Market
19 Other Financials / Wires Publications / WebsitesIslamic SitesIslamic Finance News (IFN)Islamic Finance AsiaZawyaSukuk.meMuslims.netEmiratesfn.comTradearabia.onlineGlobal Islamic Finance MagazineYasaar MediaOther Financials / WiresReuters / BloombergMalaysian BusinessAsia MoneyInstitutional investorFortuneThe AssetForbesFTSE Global MarketFinance Asia
20 Abu Dhabi, Jeddah & Riyadh Events / Sponsorship / Speaking EngagementsDateEvent listVenue22 – 24 Dec 201017th Annual world Islamic Banking ConferenceBahrain12 Nov 2010IFN Roadshow United KingdomLondon2 – 3 Oct 20104th OIC stock Exchanges Forum (OIC SEF) MeetingIstanbul1 Oct 2010IFSB Seminar on Islamic Capital Market3 June 2010Luxembourg Financial ForumLuxembourg24 – 25 May 20106th Annual world Islamic Funds and Capital Markets Conference 201013 May 2010IFN Roadshow Hong KongHong Kong3-5 May 20107th IFSB Summit 201030 Apr – 2 May 2010MIFC Roadshow to UAE and Kingdom of Saudi ArabiaAbu Dhabi, Jeddah & Riyadh22-25 Apr 20103rd South Asian Capital Market ConferenceMauritius
21 12th Floor, Exchange Square THANK YOUIslamic MarketsBursa Malaysia Berhad12th Floor, Exchange SquareBukit Kewangan50200 Kuala LumpurTel:Fax:Bursa Malaysia and its Group of Companies (“the Company”) reserve all proprietary rights to the contents of this Presentation. No part of this Presentation may be used or reproduced in any form without the Company’s prior written permission.This Presentation is provided for information purposes only. Neither the Company nor the Presenter make any warranty, express or implied, nor assume any legal liability or responsibility for the accuracy, completeness or currency of the contents of this Presentation.It is your responsibility to verify any information before using or relying on it.
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