Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange (KLSE), is the primary stock exchange in Malaysia. Here is a brief history of Bursa Malaysia:
Formation: Bursa Malaysia was established in 1973 when the Stock Exchange of Malaysia and Singapore (SEMS) was divided into two separate exchanges following the separation of Singapore from Malaysia. The Kuala Lumpur Stock Exchange (KLSE) was formed to serve as Malaysia's stock exchange.
Computerization: In the early years, trading on the KLSE was done manually through an open outcry system. However, in 1998, the exchange underwent a significant transformation with the implementation of the Computerized Order Routing and Execution System (CORES). This computerization allowed for more efficient and transparent trading.
Name Change to Bursa Malaysia: In 2004, the KLSE underwent a rebranding exercise and changed its name to Bursa Malaysia. The new name aimed to reflect the exchange's broader role in the Malaysian capital market and its aspiration to become a leading regional exchange.
Demutualization and Public Listing: In 2004, Bursa Malaysia also underwent demutualization, transitioning from a member-owned organization to a public-listed company. This move was aimed at enhancing corporate governance, transparency, and accountability.
Technology Advancements: Bursa Malaysia has continuously embraced technological advancements to enhance its trading infrastructure and market efficiency. It introduced the fully automated trading system known as Bursa Trade Securities (BTS) in 2008, which enabled faster and more secure trading.
Product Expansion: Over the years, Bursa Malaysia has expanded its product offerings to cater to a broader range of investors. It introduced new market segments, such as the ACE Market (formerly MESDAQ) in 1999, aimed at providing a platform for small and high-growth companies to raise capital.
Global Recognition: Bursa Malaysia has gained recognition as a reputable exchange globally. It is a member of the World Federation of Exchanges (WFE) and has collaborations with other international exchanges to promote cross-border trading and investment.
Today, Bursa Malaysia operates as a fully integrated exchange offering a range of products and services, including equities, derivatives, Islamic finance, and exchange-traded funds (ETFs). It plays a vital role in facilitating capital raising, supporting economic growth, and providing investment opportunities for domestic and international investors.
Disclaimer: The information provided here is for educational and informational purposes only and should not be construed as financial or investment advice. The history of Bursa Malaysia may be subject to further developments and changes. Investors should conduct thorough research and seek professional advice before making any investment decisions
