Executive Chairman of Kuala Lumpur Stock Exchange (KLSE) Dato' Mohd Azlan Hashim said the significant growth of cross border trades, greater linkages among markets and mobile portfolio investments have necessitated continued improvements and enhancements to the clearing, settlement and depository (CSD) infrastructure.
Mohd Azlan was speaking at the CSD Conference 2003 held in Kuala Lumpur today. Mohd Azlan is also the Chairman of Securities Clearing Automated Network Services Sdn Bhd (SCANS) and Malaysian Central Depository Sdn Bhd (MCD) - the clearing house and central depository of the KLSE Group.
Mohd Azlan added the present CSD infrastructure has to respond to the pressures and challenges of a more integrated global capital market and the demand for increased transparency and improved corporate governance.
"Taking cognisance of these developments, the KLSE Group is embarking on a system re-engineering process.
"This process will enable the KLSE Group to revamp its operations to take advantage of the benefits of the latest information technology developments.
"A recent development is the technology alliance between KLSE and AtosEuronext. This effort includes the development of a common trading platform by 2004 and a common clearing platform by 2005 for securities and derivatives," he said.
Mohd Azlan added business process re-engineering is also significant in the development of straight through processing (STP).
"The increasing volume of transactions, requires more efficient and secure trade and settlement processes which can be provided by STP.
"Increasing competition among markets also makes the introduction of STP a competitive edge for the KLSE Group," he said.
The one-day CSD Conference 2003, jointly organised by SCANS and MCD, saw the gathering of over 200 industry experts, both local and international. In line with this year's theme - CSD: Delivering Market Efficiency, the active and constructive discussions on issues facing the current CSD environment have resulted in practical and useful ideas towards further improvement of the marketplace - to be more secure, efficient and cost effective.
It is also significant that the 10th anniversary of the Central Depository System (CDS) was celebrated on 22 July 2003. The anniversary marks the completion of an era of growth, development and challenges and the beginning of a new financial landscape - a demutualised exchange group with greater agility and flexibility, a more liberal environment for the participants and a more competitive environment for all.
