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Our Material Factors

We strive to become the leading market for sustainability in ASEAN and an exemplary PLC that is not only benchmarked to international standards and frameworks but with peer exchanges as well.

Technology

Technology

The Importance of Technology [GRI103-1]

Technology has been the driving force for Bursa Malaysia in our mission to bring efficiency and innovation to the exchange, as well as to our trading members and investors at large. Given this central role, technology is a material topic across all of our operations.

Our Approach to Technology [GRI103-2]

Our Technology & Information Management Division is responsible for technology matters at Bursa Malaysia. Our approach is guided by our ‘Technology Strategy 2017-2020’, as approved by our Management Committee (MANCO) and our Board of Directors in December 2016. The effectiveness of this strategy will be evaluated by our Project Steering Committee, as well as reviewed by MANCO and our Transformation Steering Committee. Performance is also measured through our Scorecard and Key Performance Indicators (KPIs) as set out in our Technology Strategy. Our Board has oversight of this process.

Improving Accessibility & Customer Experience

As an exchange the accessibility and reliability of our trading systems is paramount. Zero downtime was experienced during 2016, with all systems recording 100% availability during the year.

High Cyber Security Standards

Cyber security has been a major area of concern globally. In this respect, we continue to place emphasis and vigilance in this area. In order to ensure that our systems and information are secured, we have invested and set in place adequate IT security tools and mechanisms to enhance our cyber resilience capabilities to anticipate, withstand, contain and rapidly recover from a cyber incident with the objective of limiting the escalating risks that cyber threats pose to both our company and the broader capital market. The tools and mechanisms are reviewed and assessed to observe with the Guidance on Cyber Resilience for Financial Market Infrastructures issued by IOSCO as well as to comply with the Guidelines on Management of Cyber Risk issued by the SC Malaysia. We apply a certified Information Security Management System (ISMS), MS ISO/ IEC 27001:2013.

Our Security Operations Centre provides 24/7 monitoring of internet related devices covering a number of event types:

In total, 177 events were detected during 2016, but led to no security breaches. Overall the risk level over the period is classified as LOW with zero breaches recorded. In 2015, we embarked on several initiatives to enhance awareness and the management of cyber threats within the trading ommunity. Continuing this focus in 2016 our progress includes:

We aim for 100% service availability and uptime as this is a critical performance factor. Going forward, technology also plays a significant role in our aspiration to attain developed exchange capability in the near future. This is driven by our three strategic themes:

1. Accessibility to ASEAN and Global

We plan to enhance the current technology infrastructure to be more robust and cost effective. We will make use of mobile services to enrich the investor experience. For cross border activities, we will further capitalise and leverage on technological developments to improve connectivity with partner exchanges. To reach out to our markets and new customers we will adopt the internet and cloud services.

In order to develop Application Programming Interfaces (APIs) and mobile applications, we will look for partnership with Financial Technology (FinTech) companies. Social media will be used to engage with our investors.

2. Adopt Innovative Technology

Innovation in technology is key for the growth of new business services. The focus is on building an information rich organisation, the efficient managing of processes end to end, managing risk via integrated risk framework industry wide, facilitating exciting trading experiences and having in place a robust and adaptive infrastructure to support the capital market business of the near future. Big Data Analytics and Artificial Intelligence capabilities can be harnessed to enable an information rich organisation. End to end processing or Straight Through Processing (STP) can be further enhanced through the use of blockchain and digitilisation. Introducing tick data for algorithmic trading and cross market trading platform between securities and derivatives is one of the areas where innovative technology can be applied. Potential areas that offer innovation are to explore partnerships with FinTech companies to expand new capabilities, and to explore the potential to improve accessibility, efficiency, security and quality of exchange services.

3. Sustainable 100% Service Availability and Relevance

To realise this strategic objective, we need to ensure that systems are kept up to date and that standards and best practices are adopted to manage and support systems and services. In addition, the infrastructure environment must be managed effectively and good governance adopted for optimum control. Some of the key components to deliver on this objective are Pro-active Monitoring and Automated Recovery Mechanisms, Mature Process Model to deliver a high standard of service management and delivery and Mature Security Management to deliver a high standard of security governance and practices.

The landscape is continuously evolving and the exchange needs to keep abreast of developments and leverage new, innovative and disruptive technology to spearhead its aspiration to achieve developed exchange status.