w w w . b u r s a m a l a y s i a . c o m

One the strategic objectives of Bursa Malaysia in recent times has been to facilitate more exciting products for investors to trade. As part of this initiative, in this issue we cover the launching of the new cash-settled Gold Futures Contract (FGLD) which was launched at the Exchange recently. The Ringgit-denominated contract is traded in small contract sizes of 100 grams, allowing investors to trade in small quantities, making each transaction affordable to all those who want to trade gold, whether they be professionals or the public at large.

An interesting development which has taken place in the market recently has been the growth in Regulated Short Selling since 2012, indicating market readiness and interest in this area. This quarter, Bursa Malaysia announced the enhancements to Regulated Short Selling and Securities Borrowing & Lending, with the number of stocks available increasing from 100 to 171 following approval from the Securities Commission to remove the cap of 100 stocks.

Finally in this quarter, Bursa Malaysia launched the 2nd edition of the Corporate Governance Guide on 1st October 2013 to reflect the principles and recommendations of the Malaysian Code on Corporate Governance (MCCG) 2012 and changes in the Listing Requirements of Bursa Malaysia. This forms part on the Exchange’s continual efforts with regard to increasing the attractiveness of the Malaysian market for investors.

If you have any feedback or comments, please email:BursaBytes@bursamalaysia.com

Issue 3 Vol 5 OCT 2013

Updates from Bursa Malaysia

Note From The Editor

HIGHLIGHTS

Bursa Malaysia Launches Cash-•Settled Gold Futures Contract (FGLD)

Regulated Short Selling and Securities •Borrowing and Lending to Facilitate More Efficient Price Discovery

The 2nd Edition of the Corporate Governance •Guide

BursaBytes 1

MARKET HIGHLIGHTS

BURSA MALAYSIA LAUNCHES CASH-SETTLED GOLD FUTURES CONTRACT (FGLD)

Malaysia’s first precious metal futures contract began it’s first day of trading on 7th October 2013. It was officially launched a few days earlier at Bursa Malaysia.

The new cash-settled gold futures contract (Contract Code: FGLD), is available to all market participants, and is aimed particularly at domestic retail investors, enabling them to trade gold on the derivatives exchange of Bursa Malaysia.

The Ringgit-denominated contract is traded in small contract sizes of 100 grams, allowing investors to trade in small quantities, making each transaction affordable to all those who want to trade gold, whether as a professional, or the public at large.

The launch of Gold Futures Contract at Bursa Malaysia (L to R):•ErminSiowDeputyPresident,FederationofGoldsmiths&JewellersAssociationofMalaysia•DatukNgYihPyngPresident,FederationofGoldsmiths&JewellersAssociationofMalaysia•Dato’TajuddinAtan,ChiefExecutiveOfficer,BursaMalaysiaandChairmanofBursaMalaysiaDerivatives•TunMohamedDzaiddinHajiAbdullah,Chairman,BursaMalaysia•ChongKimSeng,ChiefExecutiveOfficer,BursaMalaysiaDerivatives•JosephNg,CountryManagerofMKSPreciousMetalsSdnBhd•NRajan,President,MalaysiaFuturesBrokersAssociation

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MARKET HIGHLIGHTS

MrChongKimSeng,theChiefExecutiveOfficerofBursaMalaysia Derivatives Berhad, said, “In Malaysia, where gold is a highly desirable commodity from a cultural standpoint, the minimum contract size of 100 grams for the Bursa Gold Futures Contract provides greater accessibility and affordability to all those who want to trade and invest in gold.

Gold jewelers, manufacturers and stockists are anticipated to be active users of the Bursa Gold Futures Contract to hedge their gold inventory risks and their forward gold purchases.

The Ringgit denomination minimises the risks associated with foreign currency fluctuations thereby providing convenience and flexibility to trade gold futures on Bursa Malaysia.”

“The Bursa Gold Futures Contract will be traded under the symbol FGLD, on the derivatives exchange of Bursa Malaysia and traded through our licensed and regulated Futures Brokers,” he said.

Mr Chong continued, “The Bursa Gold Futures Contract will be cash-settled based upon the London AM Fix price in USD, which provides confidence in price transparency making it as close as possible to the true price of gold”.

For more information on the new FGLD or gold futures contract and how to start trading gold futures, visit:

Gold Futures (FGLD)

BursaMalaysiaDerivatives’CEO,ChongKimSeng(L),andEVPProductDevelopment,JeffreyTan, providing details on FGLD during the Q&A session.

Dato’ Tajuddin delivering his speech.

The attendees at the launch.

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MARKET HIGHLIGHTS

REGULATED SHORT SELLING AND SECURITIES BORROWING AND LENDING TO FACILITATE MORE EFFICIENT PRICE DISCOVERY

The number of eligible RSS counters increased from 100 to 171

On 24th July, Bursa Malaysia announced the enhancements in Regulated Short Selling (“RSS”) and SecuritiesBorrowing & Lending (“SBL”) which is an instrument to facilitate more efficient price discovery.

ThetotalRSStradevaluereachedamonthlypeakatRM293million inJunethisyearfromazerobase inMarch2012[a] indicating market readiness and interest. Trade value is anticipated to continue growing as the Exchange introduces plans to attract greater market participation in the SBL. The number of stocks available has increased from 100 to 171 following the Securities Commission Malaysia’s (“SC”) approval on the removal of the 100 stocks cap. SC’s approval also includes a fast entry allowance for stocks with large market capitalisation.

Bursa Malaysia also shared that the latest 10 day market data on RSS trades will be shared on their website and is part of their efforts to allow for greater visibility with regards to the RSS / SBL activities in the marketplace. For more details, please visit the Equities Market Statistics page on the Bursa Malaysia website.

RSS and SBL in a nutshell

Under the Exchange’s RSS framework, a short seller can only short sell an “approved security” as determined by the Exchange. A short seller must first borrow securities or have located a borrowing before the seller can execute a short sale. The securities for RSS can be borrowed either under the Exchange’s Securities Borrowing & Lending Agency (“SBL-CLA”) or the Securities Borrowing & Lending Negotiated Transactions (“SBL-NT”) models.

[a]Source:BursaMalaysiaRSSstatisticsasat30June2013

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MARKET HIGHLIGHTS

Bursa Malaysia launched the 2nd edition of the Corporate Governance Guide on 1st October 2013 to reflect the principles and recommendations of the Malaysian Code on Corporate Governance (MCCG) 2012 and changes in the Listing Requirements of Bursa Malaysia.

Public listed companies are advised to refer to this edition for the latest updates of the Corporate Governance Guide. The guide can be downloaded from Bursa Malaysia’s website:

Corporate Governance Guide (2nd Edition)

THE 2nd EDITION OF THE CORPORATE GOVERNANCE GUIDE

SECURITIESMARKETSNAPSHOT3Q2013Indices 3Q 2013 2Q 2013FTSEBursaMalaysiaKLCI FTSE Bursa Malaysia Top 100 FTSE Bursa Malaysia EMAS FTSE Bursa Malaysia ACE FTSE Bursa Malaysia Palm Oil Plantation FTSE Bursa Malaysia Asian Palm Oil Plantation (USD) FTSE Bursa Malaysia Asian Palm Oil Plantation (MYR) FTSE Bursa Malaysia Hijrah Shariah FTSE Bursa Malaysia EMAS Shariah Market Highlights Units 3Q 2013 2Q 2013MarketVelocity(QuarterlyAverage) %Market Capitalisation (as at end of quarter) RM bil TotalTradingVolume(OMT+DBT) bilTradingVolume(OMT) bilAverageTradingVolume(OMT) bilTotalTradingValue(OMT+DBT) RMbilTradingValue(OMT) RMbilAverageTradingValue(OMT) RMbilNo. of Trading Days day No. of PLCs counter No. of Listed REITs counter No. of Listed Structured Warrants counter New Listings - IPOs (Including REITs) counter New Listings - Structured Warrants counter No. of Delisted Companies counter Total Funds Mobilised RM bil No. of Rights and Bonus Issues unit No. of New CDS Accounts Opened account

FOREIGNOWNERSHIPBASEDONMARKETVALUE

1,768.6212,027.2012,289.65

5,537.1716,842.6316,991.3419,231.9613,401.8012,364.88

30.91,611

1091041.7

1311262.063

91017

4314

1134

2.911

35,335

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1,773.5412,080.7112,304.91

4,684.5017,123.6317,724.7119,458.2113,357.3312,294.50

36.81,599

1081041.7

1501452.363

91017

4435

689

8.014

57,892

23.7%   23.7%  23.9%   24.0%  

24.1%  24.3%  

24.8%  

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24.2%   24.1%  

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18.1%   18.1%  

21.2%   21.6%  24.2%  

26.2%  

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FBMKLCI  

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M"#  %a'i#ali*a+o-  (bil)  

Volume  (bi)    &  Value

 (RM  bil)  

Total  Val   Total  Vol   MEt  FapGtalGHaIon  

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DAILYMARKETTREND:FBMKLCIANDMARKETVELOCITY

DAILYMARKETTREND:MARKETCAPITALISATION,TOTALVOLUMEANDVALUE

6 BursaBytes

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DERIVATIVES

DERIVATIVESMARKETSNAPSHOT3Q2013

Margin Rates

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DISCLAIMER:Bursa Malaysia does not make any recommendation or endorsement regarding any securities or derivatives products identified in this newsletter. Please seek the advice of professionals, as appropriate, in respect of the evaluation of any specific securities or derivatives product, index, report, opinion, advice or other content. Whilst Bursa Malaysia endeavours to ensure that the contents in this newsletter are accurate, correct or have been obtained from sources believed by Bursa Malaysia to be accurate and reliable, please take notice that all information is provided on an “as is” basis without warranties of any kind and Bursa Malaysia hereby disclaims all expressed, implied and statutory warranties of any kind to the recipient of this newsletter and/or any third party. In no event shall Bursa Malaysia be liable for any claim, howsoever arising, out of or in relation to this newsletter to the recipient of this newsletter and/or to any other third party.

Volume

Open Interest

BursaBytes 7

Combined Commodity

SPAN Price Scan Range

(RM)

SPAN Volatility Scan Range

(%)

Spot Month Charge (RM)

Spot Month Spread

(RM/pair)

Back Month Spread

(RM/pair)

Short Option Minimum (RM)

New 22/8/2013 4,000 7 - 350 300 50Previous 9/5/13 5,000 7 - 350 300 50New 22/8/2013 5,000 5 250 - 800 50Previous 5/8/13 5,750 5 250 - 800 50

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