Bursa Malaysia to revitalise SBL and short selling
19 July 2013 Kuala Lumpur
Image: Shutterstock
Kuala Lumpur’s stock exchange Bursa Malaysia will reportedly release new guidelines next week for both SBL and short selling.
The exchange announced today their best financial results for the quarter and first half since the 2007 rally, and a special 20 sen dividend on top of the 16 sen dividend to be distributed to the shareholders.
For the period under review, revenue from the securities market registered a strong double-digit performance of 17 percent, bringing the current total to RM109 million.
This improved performance is derived from a higher average daily trading value of RM2.06 billion, an increase of 19 percent from RM1.74 billion for the corresponding period under review.
CEO of the stock exchange Dato’ Tajuddin said: “In the coming months, we will be focusing on value extraction in order to take advantage of all the initiatives and projects which we have worked hard to complete.”
“We will continue to build for the future to further strengthen our breadth and depth of the markets. Amongst our focus areas will be the regulated short selling and securities borrowing and lending which is necessary for Malaysia to achieve developed market status.”
Short selling regulations were introduced in 1996, relatively early for what was then a very emerging market. The business didn’t last long; at the heart of the Asian crisis less than a year later, securities borrowing and lending was suspended on all shares listed on Bursa Malaysia.
In 2007, a new system was introduced. The Bursa SBL system, offered by Bursa Malaysia Securities Clearing, specifies which shares are currently eligible for borrowing and lending—the numbers vary, but most publicly traded shares are permitted.
Securities borrowing and lending (SBL) activities in Malaysia must either be made through an approved clearing house acting as a central lending agency (CLA) under the SBL-CLA model; or entered directly over-the-counter between the eligible participants and facilitated by the approved clearing house under the SBL- negotiated transactions (SBL-NT) model.
The exchange announced today their best financial results for the quarter and first half since the 2007 rally, and a special 20 sen dividend on top of the 16 sen dividend to be distributed to the shareholders.
For the period under review, revenue from the securities market registered a strong double-digit performance of 17 percent, bringing the current total to RM109 million.
This improved performance is derived from a higher average daily trading value of RM2.06 billion, an increase of 19 percent from RM1.74 billion for the corresponding period under review.
CEO of the stock exchange Dato’ Tajuddin said: “In the coming months, we will be focusing on value extraction in order to take advantage of all the initiatives and projects which we have worked hard to complete.”
“We will continue to build for the future to further strengthen our breadth and depth of the markets. Amongst our focus areas will be the regulated short selling and securities borrowing and lending which is necessary for Malaysia to achieve developed market status.”
Short selling regulations were introduced in 1996, relatively early for what was then a very emerging market. The business didn’t last long; at the heart of the Asian crisis less than a year later, securities borrowing and lending was suspended on all shares listed on Bursa Malaysia.
In 2007, a new system was introduced. The Bursa SBL system, offered by Bursa Malaysia Securities Clearing, specifies which shares are currently eligible for borrowing and lending—the numbers vary, but most publicly traded shares are permitted.
Securities borrowing and lending (SBL) activities in Malaysia must either be made through an approved clearing house acting as a central lending agency (CLA) under the SBL-CLA model; or entered directly over-the-counter between the eligible participants and facilitated by the approved clearing house under the SBL- negotiated transactions (SBL-NT) model.
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