251 Operations of BM

Operations of BM

Having knowledge of operations of BM enables us to know the lines of products and services offered to investors and corporations listed on Bursa Saham. There are four market segments that drive the delivery points of BM operations structure and deliverables:

1. Securities market: BM provides the listing, trading, clearing, depository of securities services for issuers of securities. In a disclosure based regime, BM plays its role by providing and disseminating information relating to equity securities quoted on exchanges for the securities market.


2. Derivatives market: BM provides the trading, clearing, depository of derivatives services. Similalry it also provides and disseminate information relating to derivative products quoted on exchanges for the derivatives market.


3. Exchange holding business: BM is an investment holding company and is listed on the Stock Exchange. BM is also a profit-making entity and is involved in investment activities. All its operational subsidiaries derive income from investment activities and products and services offered for purposes of enabling local and global investors and corporations in fund raising, trading of securities or any financial instruments.


4. Shariah-Compliant Securities: BM also provides a Shariah-Compliant commodity trading platform and electronic trading platform for the bond market and trading of an offshore market.


Its subsidiaries and its respective principal activities are as follows:

Table 5.1 Subsidiaries of Bursa Malaysia and thier activities
(Adapted from Bursa Malaysia website)


Although BM is an investment holding company which has its profit-making commercial objective, it also plays the role as a frontline regulator. In the regulatory structure of capital market, SC plays the role as a monitor and supervision regulator. Therefore SC can also regulate BM as it is a listed entity in the capital market. BM regulates other listed entities on its securities exchange.


BCS 202/05 Corporate Compliance Management Copyright © 2011 by Wawasan Open University. All Rights Reserved.


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