Bursa Malaysia has launched a universal connectivity solution providing coverage across over 900 data centers in 32 countries across Asia, Europe and the US, in a bid to enhance its visibility in the global market.
The solution, Bursa Connectivity Services, connects buy and sell sides, information vendors as well as third-party solution providers. It enables users to create new financial products and analyze trading opportunities.
“This new initiative will establish a larger pool of international investors for Bursa Malaysia. It will allow more global investors greater access to our market, breaking down barriers and allowing for a more seamless flow of insights resulting in increased investor interest,” Muhamad Umar Swift, CEO of Bursa Malaysia, commented. It is hoped that greater data accessibility would improve trade flow.
The new capability is part of the Malaysian exchange’s efforts to diversify its business channels as well as a means to generate new non-trading revenue.
“Over the past three years, Bursa Malaysia’s data business has evolved from managing data ‘as-a-business’ to a more strategic mandate using data and digital capabilities to drive new and impactful innovations in areas which aim to create value to the industry, such as the ESG agenda of the market,” explained Wong Chiun Chiek, the director of Bursa Intelligence. According to Wong, activities are already underway to reach out to new investors.
Malaysia boasts one of the most sophisticated Islamic capital markets globally. As at the end of November 2022, Shariah compliant instruments command 64.06% of total Malaysian capital market, according to latest official statistics. By market capitalization, 64.73% of securities listed on Bursa Malaysia are certified Shariah compliant while 81.15% of the 971 public listed companies on the exchange are considered Shariah compliant.
The exchange has been investing heavily in technology to move up the value chain. Its initiatives include, among others, rolling out a digital gold dinar proof-of-concept (PoC) to make Shariah compliant gold investments more accessible for investors, the launching of analytics platforms for retail and institutional investors and introducing digital platforms for corporate investor relations.