Friday, January 27, 2012

What is Cagamas?

Cagamas is one of the non-bank financial intermediaries introduced by the government to enhance and improve the housing sector in Malaysia. Its main function is to refinance housing loans by issuing bonds in the capital market. For further details, please refer the article below (you can also click the link to go to Cagamas website)  : 

Cagamas Berhad (Cagamas), the National Mortgage Corporation, was established in 1986 to promote the broader spread of house ownership and growth of the secondary mortgage market in Malaysia. 

It issues debt securities to finance the purchase of housing loans from financial institutions and non-financial institutions. The provision of liquidity to financial institutions at a reasonable cost to the primary lenders of housing loans encourages further expansion of financing for houses at an affordable cost.

The Cagamas model is well regarded by the World Bank as a successful secondary mortgage liquidity facility. Cagamas is the leading issuer of AAA debt securities in Malaysia as well as one of the top Sukuk issuers in the world. Cagamas’ debt securities continue to be assigned the highest ratings of AAA and P1 by RAM Rating Services Berhad and AAA/AAAID and MARC-1/MARC-1ID by Malaysian Rating Corporation Berhad, denoting its strong credit quality.    read more

Bursa Suq Al-Sila'

  • Bursa Suq Al-Sila' is a commodity trading platform specifically dedicated to facilitate Islamic liquidity management and financing by Islamic banks. 

  • Initiated as a national project, Bursa Suq Al-Sila' exhibits the collaboration of Bank Negara Malaysia (BNM), the Securities Commission Malaysia (SC), Bursa Malaysia Berhad (Bursa Malaysia) and the industry players in support of the Malaysia International Islamic Financial Centre (MIFC) initiative.

  • It receives close co-operation and strong support of the Ministry of Plantation Industries and Commodities through the Malaysian Palm Oil Board (MPOB), Malaysian Palm Oil Association (MPOA) and Malaysian Palm Oil Council (MPOC). 

  • The fully electronic web based platform provides industry players with an avenue to undertake multi commodity and multi currency trades from all around the world. 

This pioneering effort cements Malaysia’s strength in both Islamic finance and Crude Palm Oil industry. Bursa Suq Al-Sila' is another innovative offering and a world’s first for Malaysia, further strengthening its position as an international Islamic financial hub. In effect, Bursa Suq Al-Sila' integrates the global Islamic financial and capital markets together with the commodity market. 

All businesses and activities of Bursa Suq Al-Sila' are managed by Bursa Malaysia Islamic Services Sdn Bhd (BMIS), a wholly-owned subsidiary of Bursa Malaysia which is regulated, transparent and fully Shari’ah compliant.  Read more... or read even more...

Thursday, January 26, 2012

Bursa Malaysia

Chapter 3 

One of the topic to discuss in Chapter 3 is Bursa Malaysia, Securities Commision and Souq Al Sila'. For a start let us look at Bursa Malaysia.... 


Bursa Malaysia is an exchange holding company approved under Section 15 of the Capital Markets and Services Act 2007. It operates a fully-integrated exchange, offering the complete range of exchange-related services including trading, clearing, settlement and depository services. The wholly-owned subsidiaries of Bursa Malaysia own and operate the various businesses, as set out below:- 

SubsidiariesPrincipal Activities
Bursa Malaysia Securities Bhd Provide, operate and maintain securities exchange
Bursa Malaysia Derivatives BhdProvide, operate and maintain a futures and options exchange
Labuan International Financial Exchange Inc.Provide, operate and maintain offshore financial exchange
Bursa Malaysia Bonds Sdn BhdProvide, operate and maintain registered electronic facility for secondary bond market
Bursa Malaysia Securities Clearing Sdn BhdProvide, operate and maintain a clearing house for the securities exchange
Bursa Malaysia Derivatives Clearing BhdProvide, operate and maintain a clearing house for the futures and options exchange
Bursa Malaysia Depository Sdn BhdProvide, operate and maintain a central depository
Bursa Malaysia Depository Nominees Sdn BhdAct as a nominee for the central depository and receive securities on deposit for safe-custody or management
Bursa Malaysia Information Sdn BhdProvide and disseminate prices and other information relating to securities quoted on exchanges within the group
Bursa Malaysia Islamic Services Sdn BhdOperate all Islamic Markets businesses and activities initiated under Bursa Malaysia

Bursa Malaysia today is one of the largest bourses in Asia with just under 1,000 listed companies offering a wide range of investment choices to the world. Companies are either listed on Bursa Malaysia Securities Berhad Main Market or ACE Market. 

In assisting the development of the Malaysian capital market and enhancing global competitiveness, Bursa Malaysia is committed to maintaining an efficient, secure and active trading market for local and global investors. 


To be the preferred partner in Asia for fund-raising, trading and investment. 


As the preferred partner, Bursa Malaysia offers a fair and orderly market that is easily accessible with diverse and innovative products and services.


As for those who are lost on how Bursa or should we say stock market works just Click This

Security Commission

As in chapter 3 explains, here are some of the background of SC . For further info you can just click the my favorite links.

Established on 1 March 1993 under the Securities Commission Act 1993, the SC is a self-funding statutory body with investigative and enforcement powers. It reports to the Minister of Finance and its accounts are tabled in Parliament annually. The SC's many regulatory functions include:
  • Supervising exchanges, clearing houses and central depositories;
  • Registering authority for prospectuses of corporations other than unlisted recreational clubs;
  • Approving authority for corporate bond issues;
  • Regulating all matters relating to securities and futures contracts;
  • Regulating the take-over and mergers of companies
  • Regulating all matters relating to unit trust schemes;
  • Licensing and supervising all licensed persons;
  • Encouraging self-regulation; and
  • Ensuring proper conduct of market institutions and licensed persons.
Underpinning all these functions is the SC's ultimate responsibility of protecting the investor. Apart from discharging its regulatory functions, the SC is also obliged by statute to encourage and promote the development of the securities and futures markets in Malaysia.

Read more....