Renewal Work-Out Slide 1 Bursa Malaysia Bhd. and its Group of Companies (“the Company”) reserve all proprietary rights to the contents of this Presentation.

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Presentation transcript:

Renewal Work-Out Slide 1 Bursa Malaysia Bhd. 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. Straight Through Processing (STP) for Improving Market Liquidity Bursa Malaysia Depository Sdn Bhd 2 June 2008

Renewal Work-Out Slide 2 STP by Bursa Malaysia Depository Bursa Malaysia Depository Sdn Bhd has regularly review its processes to facilitate a shorter and more efficient timeline for the Listed Issuer to market their shares. To meet this objective, we introduced STP in some of our processes for greater efficiency.

Renewal Work-Out Slide 3 STP by Bursa Malaysia Depository STP initiatives by Bursa Malaysia Depository. –eRapid –SPEEDS

Renewal Work-Out Slide 4 eRapid Introduced in Portal to enable the Issuer / Share Registrar (Transfer Agent). –To request for Records of Depositor (ROD) / List of Shareholders. –Transmit Allotment files. –Disseminate circulars to stock broking companies and share registrars.

Renewal Work-Out Slide 5 eRapid – Old way Prior to the introduction of eRapid, Physical delivery of documents using forms & diskettes. Slow - take days to weeks to complete to process and credit the allotments and to receive RODs. Subject to delays when diskettes are faulty.

Renewal Work-Out Slide 6 eRapid – Old way Lack of security and involvements of courier services. Also risk of documents lost in transit. Costly - involves transportation cost.

Renewal Work-Out Slide 7 eRapid – Requesting for ROD 1. Submit ROD Request 2. Transfer ROD Request 5. Download ROD from website 4. Posting of ROD 3. Processing of ROD CDS database eRapid Server Issuer’s/ Share Registrar

Renewal Work-Out Slide 8 eRapid – Processing of Allotment 1. Submit Allotment Request 2. Transfer Allotment Data 6. Download results from website 5. Posting of Allotment verification & crediting results 3. Processing of verification of allotment data 4. Crediting of securities CDS database eRapid Server Issuer’s/ Share Registrar Broker’s terminal Investor’s terminal 7. via eFix - Updates of accounts balances 8. Send updates to client

Renewal Work-Out Slide 9 Benefits from eRapid The introduction of eRapid STP has reduced the time to process the allotments. With the shorter time needed to credit the shares, shareholders can now trade their shares earlier.

Renewal Work-Out Slide 10 SPEEDS Introduced in March Improve the processing of certain Corporate Exercises. –Bonus Issue. –Share Split. –Shares Consolidation.

Renewal Work-Out Slide 11 Old Process for Corporate Exercise 1.Request Record of Depositors (ROD) 3.Received ROD Share Registrar 2.Process ROD on BCD night 4.Compute the entitlement list 5.Forward allotment data for verification 6.Revert on verification results 7.Print & dispatch Notice of Allotment 8.Credit shares on the evening prior to the listing date Bursa Depository

Renewal Work-Out Slide 12 SPEEDS Process for Corporate Exercise 2.Receive crediting data Share Registrar 1.Process on BCD - Generate ROD - Compute entitlement - Credit the securities 3.Print & dispatch Notice of Allotment Bursa Depository

Renewal Work-Out Slide 13 Benefits of SPEEDS ActivitiesNon-SPEEDS Subdivision of Shares Non-SPEEDS Share Consolidation Non-SPEEDS Bonus Issue SPEEDS timeline Announcement of Books Closing Date (“BCD”) BCD - 10 Trading suspensionfrom BCD - 4 N/A Books Closing DateBCD Application for quotation BCD + 4 BCD + 8N/A QuotationBCD + 6 BCD + 10BCD + 1 No. of days the securities are suspended 10 days The new securities can only be traded 10 days after BCD) Nil (new securities can be traded immediately on Ex date)

Renewal Work-Out Slide 14 Benefits of SPEEDS Shorter time to market and continuous trading of shares. Certainty of timeline for issuers, shareholders and investors.  Automatic quotation of securities on the next market day from BCD. Promotes investor’s confidence from uninterrupted trading. Reduction in investors’ risk exposure. Shares no longer suspended.

Renewal Work-Out Slide 15 SPEEDS As at 30 April 2008, Bursa Depository has processed bonus issues, Subdivision of Shares and Shares Consolidations involving 106 counters. With earlier listing and non-suspension of counters has resulted in increased trades with estimated values of more than 4.3 Billion Malaysian Ringgit.

Renewal Work-Out Slide 16 Benefits of STP processes The STP that is currently implemented has brought many benefits. –Allows shorter time to process & market securities thus effectively increases the liquidity in the market. –Simplifies processes. Reduces cost (delivery, man power). Risk of error or omission.

Renewal Work-Out Slide 17 Benefits of STP processes –Almost end-to-end processing. Less human intervention. –Paper reduction.

Renewal Work-Out Slide 18 THANK YOU