FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

ASEAN Exchanges plans on track to promote ASEAN as an asset class

Following the November 2011 ASEAN Exchanges CEOs meeting, the ASEAN Exchanges CEOs today announced that the collaboration framework is on track towards meeting its goals of collectively promoting ASEAN as a highly investable asset class.

The Philippine Stock Exchange President and CEO, Hans Sicat said, “the marketing of the ASEAN Stars and the work on an ASEAN index series continues as planned with the ASEAN Exchanges collaboration members. The 2012 marketing activities for ASEAN Exchanges will be finalised at our scheduled CEOs meeting on December 2nd in Hanoi.”

The seven ASEAN Exchanges have a combined market capitalization of approximately USD2.0 trillion and more than 3,600 companies listed on their exchanges. Some of these companies are the largest and most dynamic companies in the world, including leaders in finance and banking, energy, telecommunications, commodities, automotive manufacturing and other industrial sectors.

The CEOs also announced the awaited roll-out plan of the ASEAN Trading Link which will see the participation of member exchanges taking place progressively in stages. The first stage will see the connectivity of Singapore Exchange and Bursa Malaysia in June 2012 and the Stock Exchange of Thailand added in August 2012 after its new trading engine goes live. The participation dates of the other ASEAN Exchanges collaboration members, namely, Hanoi Stock Exchange, HoChiMinh Stock Exchange, Indonesia Stock Exchange and The Philippines Stock Exchange will be announced at a future date.

Tajuddin Atan of Bursa Malaysia Berhad said, “The three bourses that will participate in the first stage of the ASEAN Trading Link represent approximately 70% of the market capitalization of the 7-member collaboration, thus offering substantial investment opportunities for investors.”

Source: MondoVisione, 17.11.2011

Filed under: Exchanges, Indonesia, Malaysia, Singapore, Thailand, Vietnam, , , , , , , , , , , ,

Asean exchanges select Nyse Technologies to build trading network

A group of Asean stock exchanges have appointed Nyse Technologies to build a direct market access electronic trading link.

Last February Bursa Malaysia, the Philippine Stock Exchange, Singapore Exchange and the Stock Exchange of Thailand outlined plans to create a single access point to ease cross-border trading and attract more international fund flows into the region. Indonesia’s exchange was initially part of the group but is no longer involved.

The partners have now signed a letter of intent appointing Nyse Euronext’s IT unit to design, build and manage the technology required for the trading link.

Nyse Technologies says its system will be underpinned by a resilient networking infrastructure that will interconnect the Asean member exchange’s and, through them, their respective communities.

The system will include services that tap this network to provide integrated market data feeds from all the participating markets and a standardised entry point for trading. Expansion of the trading link’s markets will be helped by the risk management and controls put in place, says Nyse.

In addition, the system will integrate with the Nyse Euronext communication network infrastructure, SFTI. This will give STFI members streamlined and cost effective access to trading in the Asean Trading Link markets.

Duncan Niederauer, CEO, Nyse Euronext, says: “The Asean Trading Link will strengthen the competitiveness of the member exchanges and enable them to better serve their customers. National and regional interest will be well served by giving investors greater access to global capital to facilitate new development, growth and wealth creation.”

Francisco Edralin Lim, CEO, Philippine Stock Exchange, adds: “Nyse Technologies brings to the table vast experience in the Exchange solutions business and we are confident that they will deliver cutting edge solutions that meet all our requirements. We are also excited about the possibilities of leveraging their extensive order routing networks to bring order flow into the Asean markets.”

Source, Finextra, 08.02.2010

Filed under: Asia, Exchanges, Malaysia, News, Singapore, Trading Technology, , , , , , , , , , , , ,

Bursa Malaysia Selects Thomson Reuters For Data Distribution Platform

Thomson Reuters today announced it has been selected by Bursa Malaysia to deliver a new data distribution platform to support their growing trading business. Under the terms of the agreement Thomson Reuters will provide its enterprise platform for high performance information management and real time market data dissemination, improving the services offered by the exchange to brokers.

Following an intensive evaluation phase, Bursa Malaysia selected Thomson Reuters based on the performance and scalability of its solutions to establish an effective and reliable data management platform for the Exchange. The offering combines the latest versions of Thomson Reuters Market Data System and direct feed technology to deliver a low latency, fully redundant and highly scalable real time platform. The platform integrates incoming data feeds from Bursa Malaysia and publishes them for distribution to their members. Market participants will gain unparalleled performance for price discovery, transparency and price improvement.

Lim Jit Jee, Chief Information Officer of Bursa Malaysia said, “As our market grows bigger and more sophisticated, there is greater need to ensure that our data distribution platform caters to speed and scalability of the changing landscape. This new market data gateway from Thomson Reuters will be beneficial to our customers as it allows the Exchange to package market data according to our customers’ needs, as well as ensure that information is distributed in an expedient manner.”

Edward Haddad, Managing Director, ASEAN, South Asia & Pacific, Thomson Reuters, said: “By providing Bursa Malaysia a complete data delivery solution, Thomson Reuters is reinforcing its commitment and ability to provide market leading technology, data, and support services to global exchanges. We are delighted to collaborate with Bursa Malaysia in support of their evolving infrastructure.”

This agreement further underlines Thomson Reuters ability to provide exchanges and electronic trading platform providers with flexible, high performance technology and content solutions to support their business needs.

Source: MondoVisione, 09.12.2009

Filed under: Asia, Data Management, Data Vendor, Exchanges, Malaysia, Market Data, News, Trading Technology, , , , , , , , ,

Bursa Malaysia and KRX: Support of the Malaysia International Islamic Financial Centre’s Initiative aims to boost Growth of Islamic Finance Market- Event 19.11.2009

The Korea Exchange (KRX) and Bursa Malaysia will be playing host to the Korean investment bankers, advisers, issuers and institutional investors at its inaugural KRX-Bursa Malaysia Islamic Capital Market Conference, which will be held on 19 November 2009 in Seoul, Korea. This conference which is co-organised in support of the Malaysia International Islamic Financial Centre (MIFC) initiative, aims to share Malaysia’s Islamic finance experience and to promote the opportunities in the Malaysian Islamic capital market landscape. This collaborative effort hopes to strengthen the growth opportunities of Islamic finance amongst the discerning Korean investors and issuers.

This conference is timely as there is a strong interest for Korea to grow the Islamic finance industry, following from the proposed liberalisation measures by the Korean government which are aimed to allow the issuance of Islamic bonds or sukuk as well as allow incomes from sukuk to be tax-exempted. These proposed laws are expected to be passed by the Korean government’s National Assembly later this year.

In conjunction with the KRX-Bursa Malaysia Islamic Capital Market Conference, delegates of the MIFC initiative, which comprises senior management of Bank Negara Malaysia (Central Bank of Malaysia), Securities Commission Malaysia and Bursa Malaysia, will be participating in the conference. Malaysia acknowledges Korea as a potential Islamic financial market and welcomes Korea’s participation in shaping the Islamic finance landscape together, via leveraging on Malaysia’s more than 30 years of experience in developing the world’s most comprehensive Islamic financial system.

Chief Executive Officer of Bursa Malaysia Berhad, Dato’ Yusli Mohamed Yusoff said, “We hope this conference will stimulate interest in the Shari’ah compliant products which are currently in demand from investors who are seeking returns from alternative and ethical investments. In addition, this visit by the delegates from the MIFC will pave the way for more opportunities to exchange ideas in Islamic finance and forge greater working relations between Korea and Malaysia for the interest of growing this important industry. We are confident that the Malaysian and Korean authorities as well as KRX and Bursa Malaysia would be able to leverage on our respective strengths in the establishment of an Islamic capital market in Korea.”

This KRX-Bursa Malaysia Islamic Capital Market Conference is expected to attract 200 participants and will provide a platform for all attendees to gain an insight into the outlook and trends of Islamic capital markets. Key discussion topics will centre around the liberalisation of Islamic financial markets, investment and business opportunities in Islamic capital market, the Islamic finance landscape and framework as well as the growth of Islamic finance products in Asia and globally.

Source: MondoVisione, 16.11.2009

Filed under: Asia, Events, Exchanges, Islamic Finance, Korea, Malaysia, News, Services, , , , , , , , , , ,

Bursa Malaysia introduces Direct Market Access for Equities Marke

Bursa Malaysia today introduced Direct Market Access (DMA) for the equities market which is aimed to enhance trading efficiency and accessibility for market participants. With this, the Exchange will be providing a complete DMA infrastructure for both the equities and derivatives markets. The DMA for derivatives market was successfully launched in April 2008.

Bursa Malaysia Berhad’s Chief Executive Officer, Dato’ Yusli Mohamed Yusoff said, “DMA is a critical component for Bursa Malaysia to remain competitive in the global investment arena. We are committed to investing in the right technologies to promote market accessibility and liquidity, as well as increased trading efficiencies. This will enable us to meet the requirement for growth and alignment with international trading practices.”

“We are confident that similar to our experience with DMA derivatives, DMA equities will attract new segment of trading participation given its increased accessibility and low latency. Market participants will also be able to enjoy greater connectivity and more control of their orders via the DMA infrastructure for equities market,” he added.

The benefits of DMA:

  • It is a ‘zero-touch electronic trading’ solution which enables investors to route orders directly to the Exchange for immediate execution.
  • It will significantly reduce the time for orders to be sent and matched from the previous average of three (3) seconds per transaction to a fraction of a second.
  • It has the ability to support algorithmic and block trading which allows institutional investors greater control through using pre-determined order conditions.
  • It provides greater access to international investors as Bursa Malaysia allows ‘Sponsored Access’ for institutional investors.
  • It enables market participants to connect their own trading front-end to the Financial Information Exchange (FIX) DMA Gateway.
  • It allows market participants to install their own servers in the Exchange’s data centre through the co-location hosting service where faster order management can be processed and lower latency when trading.

For further information and details on DMA Equities, please contact Bursa Malaysia via email at DMA@bursamalaysia.com

Source: Bursa Malaysia, 09.11.2009

Filed under: Asia, Data Management, Exchanges, FIX Connectivity, Malaysia, Market Data, News, Trading Technology, , , , , , , , , ,

ASEAN markets cross trading links in demand – TABB Group

In new equity markets research published today, TABB Group says US and European demand for electronic linkage to Association of Southeast Asian Nations (ASEAN) exchanges is strong and primed to expand, as seamless access will attract brokers already trading in other parts of Asia. However, there is a wide range of needs across the different market segment, including direct market access (DMA), low-cost versus real-time market data, advanced order types, and reliable trading platforms.

TABB’s senior analyst Kevin McPartland, who authored the ASEAN Equity Markets Pinpoint report, an industry update on equity trading in the ASEAN region covering the Indonesia, Philippines, Thailand, Vietnam, Malaysia and Singapore exchanges, says the global financial crisis had little impact on growing buy-side demand for trading in ASEAN markets.

“More seamless access will drive brokers already operating in other parts of Asia to begin trading in the ASEAN markets,” he says, with the sell side set to benefit most from that seamless access. Explaining that the availability of real-time market data is crucial for all trading in the ASEAN markets, and that real time data is a requirement for the sell side even when trade volumes are low or non-existent, he adds, “High costs and time zones do tend to limit buy-side market data usage outside of the region.”

Addressing the relationship between the buy side and sell side, McPartland says that although no single broker currently dominates across all Asian markets, over 90% of buy-side firms are unwilling to give brokers full discretion over their orders. However, while the buy side does look to their brokers for market access, they agree that more seamless access would lower costs for execution and market data. There is also significant support for the idea of central ASEAN execution venue, McPartland adds.

The report’s in-depth coverage includes 24 charts:

  • Support for a central ASEAN venue
  • Improving ASEAN trading
  • Sell-side interest in ASEAN linkage
  • % of bulge-bracket participants trading in each market
  • Impact of the financial crisis on ASEAN interest
  • Roadblocks to sell-side trading in ASEAN markets
  • Buy-side broker usage – all Asia ·
  • Buy-side broker usage – ASEAN markets
  • Top brokers by country (by # of mentions)
  • Bulge-bracket participants trading in each market
  • Mid-tier participants trading in each market
  • Buy-side interest in a seamless ASEAN linkage
  • Roadblocks to buy-side access of ASEAN markets
  • Average number of buy-side orders per week
  • Average blended commission rates (bps)
  • % for which counterparty risk is an issue
  • Importance of each component when trading in ASEAN markets
  • Markets providing real-time market data to sell side
  • Market data sources for sell side
  • Markets providing real-time market data to buy side
  • Reasons for buy side’s lack of market data
  • How the buy side trades ASEAN markets
  • % of buy side using multiple data providers ·
  • Sell-side and buy-side market data providers

TABB Group collected data through interviews with heads of electronic trading from 12 top global broker-dealers, 9 hedge funds and 14 institutional asset managers. On the buy side, participants had combined global assets under management (AuM) of approximately $6 trillion and are currently trading in Asia from slightly under $10 million to over $5 billion monthly.

Source: MondoVisione, 23.10.2009

Filed under: Asia, Data Management, Exchanges, Indonesia, Malaysia, Market Data, News, Singapore, Thailand, Trading Technology, Vietnam, , , , , , , , , , , , , , , , , , , , , ,

4th China International Oils and Oilseeds Conference (CIOC) 7th November 2009

The 4th China International Oils and Oilseeds Conference (CIOC), jointly organized by Bursa Malaysia and Dalian Commodity Exchange (DCE) and the The NextView (NextVIEW) will be held in Shangri-La Hotel Guangzhou, China on November 7-8, 2009.

For Program and Registration click here

We would be honored to invite you join the most attractive annual event for China’s oils and oilseeds industry. Malaysia is one of the largest export countries for palm oil, with the most successful futures market of crude palm oil worldwide. Palm Oil Conference (POC), organized by Bursa Malaysia for 20 years, is the most successful conference in the global oils and oilseeds market, and attracts more than 1000 delegates from over 40 countries. Bursa Malaysia and Dalian Commodity Exchange, the largest futures exchange in China since 2000 and the second largest agricultural futures market in the world, built up a strategic relationship of cooperation in 2006, and, to better serve for investors and for global oils and oilseeds industry, jointly organized the 1st CIOC in 2006 as the sister event for POC, which provides a high-level platform of information exchange and networking for both spot and futures markets of oils and oilseeds. With strong support by investors and industry, the CIOC is a flagship annual event for the industry and attracts over 700 audiences every year.

The event is co-sponored by: The NextVIEW (Singapore), CBOE (USA) , BM&FBOVESPA (Brazil), China National Grain Association, China Soyabean Industry Association and China Cereals and Oils Association.

Filed under: Asia, Brazil, China, Events, Exchanges, Malaysia, News, , , , , , , , , , , , ,

Bursa Malaysia and CME Group in derivatives partnership

In line with the Prime Minister of Malaysia, Dato’ Sri Najib Tun Abdul Razak’s acknowledgement on Bursa Malaysia Berhad’s (Bursa Malaysia) cooperative efforts with CME Group Inc (CME Group) to develop a robust derivatives market, the two exchanges announced today that they are working towards a collaboration involving trade matching services, product licensing and minor cross-equity investments.

The CME Group equity stake will relate to Bursa Malaysia’s derivatives business. Specific terms will be announced at a later date. Both parties announced that this initiative is subject to regulatory approval.

With this strategic partnership, CME Group will use Bursa Malaysia’s RM-denominated CPO futures contract (FCPO) settlement prices, which will enable CME Group to develop a USD-denominated cash-settled CPO futures contract and its related options for listing on one of CME Group’s US registered exchanges. This product is expected to be traded on CME Globex, which is CME Group’s electronic trading platform.

Dato’ Yusli Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia, said, “The proposed collaboration is not only timely but also necessary as it would contribute to the overall growth of the Malaysian capital market. It is also aimed at globalising the Malaysian crude palm oil (CPO) futures market. Consequently, part of this proposed collaboration will enable Bursa Malaysia Derivatives to list its derivatives products on CME Globex. Through this collaboration, we expect the resulting expertise and knowledge transfer to further facilitate our goal for a robust derivatives exchange.”

“This initiative, when implemented, will enable our customers from other markets to access Bursa Malaysia’s derivatives markets and products on CME Globex, the leading and most widely distributed electronic trading platform in the world, further demonstrating our flexibility to operate in multiple jurisdictions for the benefit of customers worldwide,” said Terry Duffy, Executive Chairman of CME Group.

“Our proposed strategic partnership with Bursa Malaysia will further enhance our globalisation efforts by facilitating our customers’ efficient access to Bursa Malaysia’s important markets,” said Craig Donohue, Chief Executive Officer of CME Group. “This proposed partnership will allow us to continue to expand our transaction processing business opportunities, increase our presence in Asia, as well as help our Malaysian partners grow their business.”

Source: CME 11.08.2009

Filed under: Asia, Exchanges, Malaysia, News, , , , , , , , ,

Bursa Malaysia Inks Commodity Murabahah Agreement With Industry Players Under MIFC Initiative – Multi-Commodity, Multi-Currency Trading Platform To Facilitate Shariah-Based Financing And Liquidity Management

Bursa Malaysia and over 26 palm oil commodity suppliers, financial institutions and trading participants, today signed a Memorandum of Participation to collaborate in the Shariah commodity trading platform, Commodity Murabahah House (CMH), which is aimed at facilitating liquidity management and the financing of Islamic financial and investment instruments.

Commodity Murabahah House (CMH), a Malaysia Islamic International Finance Centre (MIFC) initiative operated by Bursa Malaysia’s fully Shariah compliant wholly-owned subsidiary, Bursa Malaysia Islamic Services Sdn Bhd, is an international spot commodity platform which facilitates commodity-based Islamic financing and investment transactions under the Shari’ah principles of Murabahah, Tawarruq and Musawwamah. Initial trades will use crude palm oil to be followed by other Shari’ah approved commodities covering both soft and hard commodities. At present, trades will be Ringgit-denominated whilst efforts are being undertaken to make it multi currency capable, providing more choice, access and flexibility for international financial institutions to participate in this market.  This trading platform, which is fully electronic, is the world’s first end-to-end Shari’ah-compliant commodity trading platform designed with the main purpose of serving the Islamic financial markets.

Dato’ Yusli Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia said, “We are the first in the world to innovate a Commodity Trading Platform infrastructure using crude palm oil as the underlying commodity.  We expect the innovation of this web-based and fully automated platform to change the way most Islamic financial institutions transact commodity murabahah going forward.

This infrastructure is set to complement our capital and money market offerings. The players, which range from financial institutions, CPO producers to trading participants, will benefit from additional revenue stream, stemming from the low liquidity risk element that is apparent in the financing structure of CMH.”

Dato’ Yusli added, “The implementation of CMH, planned for August this year, is in line with our efforts to further spur the development of the Islamic market in Malaysia. We are confident that this will give Bursa Malaysia the stature to bring forth its Islamic market’s offerings to the global front.”

Commodity Murabahah is widely used as a money market tool by Islamic banks in the GCC. The concept of Commodity Murabahah involves one party buying commodity at a certain cost and selling it to a customer at a cost-plus-profit basis. The customer will then pay the amount and the profit to the party on deferred-payment basis. The customer then sells back the commodity to the commodity market on spot for cash. The trade involves the sale and purchase of real physical assets.

Source: MondoVisione, 29.07.2009

Filed under: Asia, Exchanges, Islamic Finance, Malaysia, News, Services, , , , , , , , ,

Bursa Malaysia Improves Financial Performance In Second Quarter With Rm35 Million Profit – Increase Due To Better Trading Volumes And Market Sentiment

Bursa Malaysia Berhad (Bursa Malaysia) today reported a higher net profit of RM35 million for the second quarter ended 30 June 2009, a 22% jump compared to RM28.6 million profit recorded in the second quarter of 2008. Operating revenue improved by 12% to RM86.8 million in the period under review compared to RM77.5 million in the previous corresponding quarter. For the half-year ended 30 June 2009, Bursa Malaysia recorded a net profit of RM50.5 million – a 29% decline compared to the net profit of RM70.7 million for the corresponding period last year. Bursa Malaysia’s operating revenue dropped by 16% to RM141.2 million from RM168.5 million registered in the same period last year.

Bursa Malaysia’s Chief Executive Officer, Dato’ Yusli Mohamed Yusoff said, “The stronger quarter-on-quarter results is attributed to heightened investor confidence and improved trading activity in the market. However, our overall six-month results need to be assessed against the backdrop of the subdued performance of the local market, which has been impacted by the uncertainties in the global financial and economic front, especially in the early part of the year. Without a doubt, our cost optimisation and prudent financial management measures have helped contribute to the better financial performance in the second quarter. We are confident that the company is well-positioned to weather the ongoing economic challenges and continue to register growth.”

Market interest picked up in the second quarter of 2009, contributing to a better daily average value and volume at RM1.56 billion and 1.68 billion respectively, compared to RM1.32 billion and 570 million in value and volume in the second quarter of 2008. Quarterly velocity substantially improved to 48% from 31% in the previous corresponding period. On the other hand, velocity for the six months of this year declined marginally to 37% from 38% in the same period in 2008. Trading revenue for the securities market decreased by 21% to RM67.4 million as compared to RM84.8 million in the first half of 2008.

The derivatives business continued to garner steady interest amongst the traders as demonstrated by the increase in total number of derivatives contracts traded in the first half of 2009. The total derivatives contracts traded were 3.27 million, up 6% from 3.08 million in the first half of 2008. However, trading revenue declined by 4% to RM21.1 million from RM22 million in the corresponding period in 2008. This drop was due to a decrease in FKLI contracts which trade at a higher fee compared to FCPO contracts. Nevertheless, the revenue decline was offset by an increase in the number of FCPO contracts, at 2 million for the period under review compared to 1.4 million in the first six months of 2008. FCPO contracts broke record levels in April, chalking an all time 27-year high of 442,220 contracts. Dato’ Yusli said that the steady performance of its FCPO market is attributed to the robust underlying industry which always has a need to hedge their positions against the volatility of the edible oils and commodity markets.

Bursa Malaysia also announced an interim dividend which consists of a franked (taxable) dividend of 5.1 sen gross per share (net 3.825 sen per share) and a single-tier (tax-exempt) dividend of 5.0 sen per share. This is equivalent to a total net dividend payout of 8.825 sen per share. The payout at 92% is higher than the Group’s dividend policy of minimum 75% payout. The interim dividend will be paid out to its shareholders on 18 August 2009. Dato’ Yusli said, “As a listed company, Bursa Malaysia is committed to continuous delivery of sustainable value to shareholders and this attractive two-tier dividend payout demonstrates just that. Moreover, we have successfully contained operating cost increases through a controlled expenditure pattern, which we will continue practising over the long term.”

Source: BursaMalaysia, 20.07.2009

The financial results for the first half of 2009 are available on Bursa Malaysia’s website (www.bursamalaysia.com).

Financial Results 1H09 1H08
RM ‘mil RM ‘mil
Operating revenue 141.2 168.5
Other income 17.5 18.4
Total revenue 158.7 186.9
Staff costs (39.5) (43.1)
Depreciation and amortisation (18.3) (9.3)
Other operating expenses (30.4) (37.9)
Profit from operations 70.5 96.6
Finance costs (0.3) (0.3)
Profit before tax 70.2 96.3
Income tax expense (19.7) (25.6)
Net profit for the period 50.5 70.7

Filed under: Asia, Exchanges, Malaysia, News, , , , , ,

Malaysian broker RHB joins Fidessa’s global network

20 May 2009 – Fidessa group plc  provider of award-winning trading, market data and global connectivity solutions for the buy-side and sell-side, has today announced that RHB Investment Bank, one of the leading brokers in Malaysia and the Corporate and Investment Banking arm of the RHB Banking Group, has joined its global connectivity network. RHB will receive DMA flow from Fidessa’s trading platform clients across the region and around the world.

Simon McDowell, Managing Director of Connectivity at Fidessa, comments: “Despite the current difficult conditions, Fidessa is continuing to grow its number of clients across the Asia-Pacific region. Local brokers from a number of countries and regional offices of international firms are connecting to Fidessa to receive order flow. We are continuing to invest heavily in our global connectivity network and are delighted that RHB’s Malaysian market expertise is now available to all our clients. RHB now have access to the whole of our buy-side and sell-side communities, many of whom are keen to take advantage of Malaysia’s dynamics and potential, and take advantage of DMA access which has recently been permitted by the Malaysia stock exchange.”

Chay Wai Leong, Managing Director of RHB Investment Bank, comments: “Electronic trading is set to expand significantly in Malaysia and Asia as a whole, and we have seen a significant growth in demand for connectivity to the markets in our region. Our relationship with Fidessa will help ensure that we remain at the head of this trend. Fidessa’s flexible technology combined with our local knowledge creates a compelling offering for both buy-side and sell-side firms on the network.” In 2008, Fidessa’s global connectivity network increased its number of connections by 50 per cent while message throughput grew by more than 80 per cent to over 180 million messages a month. The Fidessa product suite provides integrated trading, market data and connectivity solutions to over 22,000 users at around 630 clients worldwide, and serves more than 85 per cent of global, tier-one equity brokers.

Source: Fidessa, 20.05.2009

Filed under: Asia, FIX Connectivity, Malaysia, News, Trading Technology, , , , , , , , , , , , , ,

New FTSE Bursa Malaysia Palm Oil Plantation Indices To Boost Exchange’s Standing As Key Commodity Centre

Bursa Malaysia Berhad (Bursa Malaysia) and award winning global index provider, FTSE Group (FTSE), today announce the launch of the FTSE Bursa Malaysia Palm Oil Plantation Index Series. This series enables investors to gain exposure to the long term growth potential of the lucrative, billion dollar palm oil industry, both in Malaysia and the Asian region. This is one further step to cement Bursa Malaysia’s position as a key centre for commodities-related capital market offerings.

The three indices launched today are the:

  1. FTSE Bursa Malaysia Palm Oil Plantation Index in Ringgit Malaysia based on the FTSE Bursa Malaysia EMAS universe;
  2. FTSE Bursa Malaysia Asian Palm Oil Plantation Index in Ringgit Malaysia; and
  3. FTSE Bursa Malaysia Asian Palm Oil Plantation Index in US Dollars.

Both Asian related palm oil plantation indices are based on the universes of developed, advanced emerging and secondary emerging countries as classified by FTSE in the Asia Pacific region excluding Japan, Australia and New Zealand, and are available in gross and net of tax versions.

These three indices allow investors to track the performance of listed companies which derive substantial revenues from palm-oil related activities. The series also supports the creation of Exchange Traded Funds (ETFs), structured products and other index-linked investment instruments.

Chief Executive Officer of Bursa Malaysia, Dato’ Yusli Mohamed Yusoff said, “The introduction of these new palm oil plantation indices is an exciting opportunity that will complement and strengthen Malaysia’s existing position as a significant player in the global palm oil industry. These palm oil plantation related indices will complement our strong footing in palm oil commodities related sector and strengthen our crude palm oil futures market as it bridges between the cash and derivatives markets for hedging and arbitraging opportunities. In short, the new indices elevate the profile of Malaysia’s palm oil industry and also establish Bursa Malaysia as a centre for commodity trading.”

Paul Hoff, Managing Director, Asia Pacific for FTSE Group said, “We are seeing evidence of increased interest in agricultural/commodity investment as investors look for niche opportunities. We are pleased to be working with Bursa Malaysia again, this time to develop the FTSE Bursa Malaysia Palm Oil Plantation Index Series to capture this unique sector.”

For more information on FTSE Bursa Malaysia Palm Oil Plantation Index Series, please visit http://www.bursamalaysia.com/website/bm/market_information/ or www.ftse.com/bursamalaysia.

Source:MondoVisione, 18.05.2009

Filed under: Asia, Data Vendor, Exchanges, Islamic Finance, Malaysia, News, , , , , , , , ,

SunGard opens Kuala Lumper GL Net hub

SunGard has opened a new hub of its GL Net low-latency market data and order routing network in Kuala Lumpur, Malaysia.

The hub, which is the eighth to be opened in the Asia Pacific region, will provide international investors with access to Bursa Malaysia, the Malaysian equity and derivatives exchange. Local financial institutions will also gain access to SunGard’s GL Net network of brokers, and be able to take advantage of direct market access execution services to more than 110 exchanges and liquidity pools.

Bursa Malaysia operates a fully integrated exchange offering trading, clearing, settlement and depository services. It is one of the largest bourses in Asia, with almost 1,000 listed companies. By opening this new GL Net hub, SunGard will help international investors send electronic orders cost-effectively to Malaysian brokers via GL Net, helping them trade on the Bursa Malaysia and create new investment opportunities.

Vincent Burzynski, chief product officer for SunGard’s global trading business, said: “The launch of this new hub helps us to address an increasing demand from our Asia Pacific customers for greater direct market connectivity in the region. It will also help international investors to access emerging markets in the region through the Bursa Malaysia. It is a further demonstration of our strategy to expand the GL Net network, supporting the growth of electronic trading and helping customers to find new investment opportunities.”

Source: SunGard, 23.04.2009

Filed under: Asia, Exchanges, Islamic Finance, Malaysia, Trading Technology, , , , , , , , ,

Asean bourses pledge electronic trading link

So far Southeast Asia’s stock exchanges have been good at signing MOUs but not so good at actually harmonising markets. Will this time be different?

Five Southeast Asian stock exchanges have signed an agreement to establish a single electronic trading link for regional or global investors to access their markets on a uniform basis, and thereby establish Asean markets as an asset class.

The mechanism among the five countries — Indonesia, Malaysia, the Philippines, Singapore and Thailand — will enable their clearing houses to act as central counterparties that can clear and settle cross-border trades among them.

Brokers with seats in any of the five exchanges would not need to consider other participating exchanges as foreign, thereby reducing risk. Investors may come to see Asean as a trading bloc, with economies of scale helping to bring down transaction costs and improve liquidity. Creating a single market would spur liberalisation in other areas.

That, at least, is the theory, as announced after business hours yesterday. Executives at these bourses have been talking about building an electronic link for years. These markets are small, which drives up the cost of cross-border trades.

At a time when major bourses around the globe are tying up, alternative electronic trading venues are penetrating the region, and events are being driven by pan-European directives such as Mifid, Southeast Asia’s fragmented markets risk falling well behind. New technologies such as dark pools and direct-market access trading have marginalised them further, because of their illiquidity.

So exchange officials and politicians have long recognised the need to harmonise their systems in order to remain attractive to global investors, market Southeast Asia as an asset class, and enhance the pool of capital available locally.

But politics have gotten in the way: Singapore is the obvious hub for the region, a fact that Singaporean officials like to point out, which makes the other players jealous and unwilling to give up control over their little patches.

Nonetheless, there has been bilateral progress. SGX CEO Hsieh Fu-Hua first proposed such a multilateral link in 2006. The following year, SGX and Bursa Malaysia unveiled a cross-border electronic link for trading securities.

Now, along with this announcement of Asean-wide cooperation, SGX and the Stock Exchange of Thailand are also pledging to jointly promote market activities, as well as operational and regulatory information, and discuss the idea of cross-border trading of securities and derivatives.

SGX’s Hsieh says the e-trading link will be operational sometime in 2010. By putting a date on the project, he and his counterparts at other exchanges are taking a concrete step towards harmonising their markets for the first time.

Source: AsianInvestor, 24.02.2009

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Malaysia gives out more Islamic fund licenses

The country steps up efforts to become a global hub for Islamic investments by awarding licenses to Aberdeen, BNP Paribas and Nomura.

Malaysia’s Securities Commission has awarded three new foreign Islamic fund management licenses to Aberdeen Islamic Asset Management, BNP Paribas Islamic Asset Management and Nomura Islamic Asset Management. That brings to eight the total number of fund houses allowed to operate Islamic fund operations in the country.

The three fund houses already have a presence in the traditional asset management industry in Malaysia, as part of the five licenses issued under a special scheme announced in 2005 that allowed foreigners to gain access to the local market after eight years of strict capital controls.

The securities commission believes that the growing interest among foreign fund houses in the Islamic licenses up for grabs in Malaysia reflects their confidence that the country can be a global hub for Islamic fund and wealth management activities. Malaysia has an equities market that is more than 85% sharia-compliant, is the world’s largest issuer of Islamic bonds, and has more than 13 Islamic unit trust funds. Sharia principles generally preclude investment in businesses such as conventional financial services, alcohol, pork-related products, gambling, leisure and entertainment. Sharia principles also preclude interest-bearing investments and investments in companies with unacceptable levels of debt.

“Despite the global slowdown, the coming on board of these three international players reflects the strong growth potential in niche areas like Islamic fund management,” says securities commission chairman Dato’ Sri Zarinah Anwar. “This will help add depth and breadth to the Islamic finance industry, of which Malaysia commands a leadership role.”

The Malaysia government allows 100% foreign ownership of Islamic fund management companies, in line with its bid to attract more key fund players to the country. The incentive is part of ongoing liberalisation measures in Malaysia’s capital market as well as being aimed at complementing the broader Malaysian International Islamic Finance Centre (MIFC) initiatives of positioning the country as a hub.

Islamic fund management companies are allowed to invest all their assets overseas and will be given income tax exemption on fees received until 2016. They will also be able to tap into M$7 billion ($2.1 billion) in seed money from the Employees Provident Fund, the national pension fund for the private sector in Malaysia. Tax incentives are also being offered to existing stockbrokers that set up Islamic subsidiaries.

Fund management companies are hungry for a portion of the wealth of the Islamic community – especially those communities in the oil-rich Middle East – and Malaysia is creating the platform for them to be able to do just that. The opportunities are vast. The world’s Muslim population is estimated at around 1.5 billion, that’s around 22% of the world’s 6.7 billion population.

There are more than $202 billion in Islamic bank deposits worldwide growing by around 10% to 20% annually and around 300 Islamic financial institutions with assets of more than $560 billion, according to modest industry estimates. Boston-based financial services research firm Cerulli Associates notes that there are around $65 billion in sharia-compliant investments worldwide. Around 53% of those assets, or $35 billion, are held in mutual funds. Specifically, $33.6 billion is managed by local fund managers, while $1.4 billion is managed by foreign fund managers.

Islamic fund management is expected to sustain the growth of Malaysia’s asset management industry. Other countries in Asia are attempting to be an Islamic hub of sorts, either in banking or asset management. Malaysia is ahead of the pack in Asia and other markets in terms of manufacturing Islamic funds and this is among its main attraction for fund houses that want to set up shop there. The industry is still growing at a considerable pace and demand for unit trust products continues to be strong.

In granting the approval to the three fund houses, the securities commission considered, among other things, the scope of operations that will be established by each of the firms in Malaysia, their fund management experience, brand value, expertise in various markets, geographical presence, and compliance and risk management capabilities.

Atsushi Yoshikawa, president and CEO of Tokyo-based Nomura Asset Management says Islamic fund management is one of the fund house’s “most important strategies”.

Vincent Camerlynck, global head of business development and member of the executive committee at BNP Paribas Investment Partners in Paris, confirms that Malaysia will serve as a strategic hub for the fund house’s Islamic business and complements its Europe and Middle East centres.

The launch of BNP Paribas Islamic Asset Management Malaysia complements the fund house’s overall exposure to the Islamic fund industry through partnerships such as the SAIB BNP Paribas Asset Management in Saudi Arabia; products such as the BNP Paribas Islamic Equity Optimiser Funds, Easy ETF DJ Islamic Market Titans 100; advisory services such as the i-VCap’s listing of the MyETF Dow Jones Islamic market Malaysia Titans 25, Asia’s first Islamic ETF; and developments in setting up sukuk (Islamic bonds) and murabaha (Islamic financing) private placement funds.

BNP Paribas Islamic Asset Management Malaysia will be led by executive director Hisham Abdul Rahim, who has 12 years of experience in the financial services industry, including Islamic finance and asset management.

Gerald Ambrose, managing director of Aberdeen Asset Management in Malaysia, says the Islamic fund license is key to the firm’s expansion in the country. Aberdeen Asset Management was the first foreign fund house to set up operations in Kuala Lumpur to manage portfolios for institutional clients in 2005. That made Aberdeen, through its Aberdeen Asset Management Sendirian Berhad entity in Malaysia, the first foreign fund manager to have a presence in Malaysia in eight years.

Having an Islamic fund management license will allow Aberdeen to tap the retail market in Malaysia. Aberdeen manages an ‘Amanah’ or an Asia ex-Japan equity fund that is sharia-compliant, which has around $100 million in assets, for a client. The client has a set of advisors and sends Aberdeen a list of stocks that it can’t invest in. It is a unit trust with Middle Eastern subscribers, run by a bank there that has given Aberdeen the mandate to manage the fund from its Singapore office.

Islamic fund management licenses were previously granted to Kuwait Finance House (Malaysia), DBS Asset Management, CIMB-Principal Asset Management, Global Investment House and Reliance Asset Management.

See here for full article from Asian Investors

Source:AsianInvestor

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