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STP by Bursa Malaysia Depository

Straight Through Processing (STP) for Improving Market Liquidity Bursa Malaysia Depository Sdn Bhd 2 June 2008.

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STP by Bursa Malaysia Depository

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  1. Straight Through Processing (STP) for Improving Market LiquidityBursa Malaysia Depository Sdn Bhd 2 June 2008 Bursa Malaysia Bhd. and its Group of Companies (“the Company”) reserve all proprietary rights to the contents of this Presentation. No part of this Presentation may be used or reproduced in any form without the Company’s prior written permission. This Presentation is provided for information purposes only. Neither the Company nor the Presenter make any warranty, express or implied, nor assume any legal liability or responsibility for the accuracy, completeness or currency of the contents of this Presentation. It is your responsibility to verify any information before using or relying on it.

  2. STP by Bursa Malaysia Depository • Bursa Malaysia Depository Sdn Bhd has regularly review its processes to facilitate a shorter and more efficient timeline for the Listed Issuer to market their shares. • To meet this objective, we introduced STP in some of our processes for greater efficiency.

  3. STP by Bursa Malaysia Depository • STP initiatives by Bursa Malaysia Depository. • eRapid • SPEEDS

  4. eRapid eRapid • Introduced in 2004. • Portal to enable the Issuer / Share Registrar (Transfer Agent). • To request for Records of Depositor (ROD) / List of Shareholders. • Transmit Allotment files. • Disseminate circulars to stock broking companies and share registrars.

  5. eRapid – Old way Prior to the introduction of eRapid, • Physical delivery of documents using forms & diskettes. • Slow - take days to weeks to complete to process and credit the allotments and to receive RODs. • Subject to delays when diskettes are faulty.

  6. eRapid – Old way • Lack of security and involvements of courier services. Also risk of documents lost in transit. • Costly - involves transportation cost.

  7. eRapid – Requesting for ROD 1. Submit ROD Request 2. Transfer ROD Request 5. Download ROD from website 4. Posting of ROD Issuer’s/ShareRegistrar eRapid Server CDS database 3. Processing of ROD

  8. eRapid – Processing of Allotment 1. Submit Allotment Request 2. Transfer Allotment Data 5. Posting of Allotment verification & crediting results 6. Download results from website Issuer’s/Share Registrar eRapid Server CDS database 7. via eFix - Updates of accounts balances 3. Processing of verification of allotment data 4. Crediting of securities 8. Send updates to client Broker’s terminal Investor’s terminal

  9. Benefits from eRapid • The introduction of eRapid STP has reduced the time to process the allotments. • With the shorter time needed to credit the shares, shareholders can now trade their shares earlier.

  10. SPEEDS • Introduced in March 2007. • Improve the processing of certain Corporate Exercises. • Bonus Issue. • Share Split. • Shares Consolidation.

  11. Old Process for Corporate Exercise Share Registrar Bursa Depository • Request Record of Depositors (ROD) • Received ROD • Forward allotment data for verification • Revert on verification results • Compute the entitlement list • Process ROD on BCD night • Print & dispatch Notice of Allotment • Credit shares on the evening prior to the listing date

  12. SPEEDS Process for Corporate Exercise Share Registrar Bursa Depository • Receive crediting data • Print & dispatch Notice of Allotment • Process on BCD • - Generate ROD • - Compute entitlement - Credit the securities

  13. Benefits of SPEEDS

  14. Benefits of SPEEDS • Shorter time to market and continuous trading of shares. • Certainty of timeline for issuers, shareholders and investors. • Automatic quotation of securities on the next market day from BCD. • Promotes investor’s confidence from uninterrupted trading. • Reduction in investors’ risk exposure. Shares no longer suspended.

  15. SPEEDS • As at 30 April 2008, Bursa Depository has processed bonus issues, Subdivision of Shares and Shares Consolidations involving 106 counters. • With earlier listing and non-suspension of counters has resulted in increased trades with estimated values of more than 4.3 Billion Malaysian Ringgit.

  16. Benefits of STP processes • The STP that is currently implemented has brought many benefits. • Allows shorter time to process & market securities thus effectively increases the liquidity in the market. • Simplifies processes. • Reduces cost (delivery, man power). • Risk of error or omission.

  17. Benefits of STP processes • Almost end-to-end processing. • Less human intervention. • Paper reduction.

  18. THANK YOU www.bursamalaysia.com

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