Continued, reliable access to the Malaysian capital market is vital for immediate and long-term market confidence

Transcription

1. This statement is issued in response to a call by Association of Stockbroking Companies of Malaysia (ASCM) on 19 March 2020 urging the Malaysian Government to suspend the trading of Bursa Malaysia Securities. It is jointly issued by the Securities Commission Malaysia (SC) and Bursa Malaysia Berhad (Bursa Malaysia or the Exchange). MEDIA STATEMENT Kuala Lumpur, 19 March 2020 Continued, reliable access to the Malaysian capital market is vital for immediate and long-term market confidence Containing Covid-19 is a top priority for the Government, facilitated by a fullyfunctioning financial system, including the stock market. The regulators, Exchange and market participants can fully function and support the marketplace while abiding by the Movement Control Order. The Securities Commission Malaysia (SC) and Bursa Malaysia Berhad (Bursa or the Exchange) acknowledge the current market volatility within a challenging and uncertain environment. We will maintain continuous trading and market operation, to facilitate investors to manage their risks and opportunities during this period. It is important for the markets to remain open, as closing the markets would neither mitigate nor address the underlying causes of market volatility. Instead, it will create greater uncertainty and adverse market sentiment by denying investors’ access to their investments. Malaysia has a resilient domestic market and capital market ecosystem. Our market continues to be supported by deep domestic liquidity amongst our large institutions. During challenging market conditions, investors need certainty and continuity. The SC and Bursa have business continuity measures in place, including backup sites, recovery facilities and alternative communications channels to operate the market in a pandemic situation. Similarly, all market intermediaries have in place business continuity frameworks to ensure continuity of their business. Market management measures (e.g. circuit breakers, static and dynamic price limit) are in place and known to participants to manage excessive volatility. Robust clearing funds, margins and deposits are also in place to ensure clearing and settlement risks are managed. SECURITIES COMMISSION MALAYSIA Page 1 of 2
2. The SC and Bursa will continue to monitor the ongoing developments to pro-actively manage risks in the marketplace and will introduce additional precautionary measures as appropriate . SECURITIES COMMISSION MALAYSIA BURSA MALAYSIA BERHAD About Securities Commission Malaysia The Securities Commission Malaysia (SC), a statutory body reporting to the Minister of Finance, was established under the Securities Commission Act 1993. It is the sole regulatory agency for the regulation and development of capital markets. SC has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Capital Markets and Services Act 2007. More information about SC is available on its website at www.sc.com.my. Follow SC on twitter at @SecComMy for more updates. About Bursa Malaysia Bursa Malaysia is an approved Exchange holding company under Section 15 of the Capital Markets and Services Act 2007. A public company limited by shares under the Companies Act 2016, Bursa Malaysia operates a fully-integrated exchange, offering equities, derivatives, offshore, bonds as well as Islamic products, and provides a diverse range of investment choices globally. For more information on Bursa Malaysia, visit www.bursamalaysia.com For media queries, please contact the following: Lau Mei San Corporate Affairs Department Securities Commission Malaysia DID: 603 6204 8305 E-mail: mslau@seccom.com.my Rizal Zainudin Group Strategic Communications Bursa Malaysia DID: 603 2034 7271 E-mail: rizalzaidi@bursamalaysia.com SECURITIES COMMISSION MALAYSIA Page 2 of 2