Kuala Lumpur Stock Exchange (KLSE) — now Bursa Malaysia

Key takeaways
* The Kuala Lumpur Stock Exchange (KLSE) is the former name of Bursa Malaysia, the principal securities exchange in Malaysia and one of the largest in ASEAN.
* Bursa Malaysia operates a fully integrated marketplace offering trading, clearing, listing, depository, and settlement services.
* Its main benchmark is the FTSE Bursa Malaysia KLCI, composed of the 30 largest listed companies by market capitalization.
* Listed instruments include equities, bonds, derivatives, exchange-traded products (ETPs), REITs, and Shariah‑compliant (Islamic) securities.
* Companies can list on the Main market, the ACE market (growth companies), or the LEAP market (small‑ and mid‑cap issuers).

What Bursa Malaysia is and how it works
* Evolution: The exchange originated in 1930 and, after several name changes and structural reforms, adopted the Bursa Malaysia identity following demutualization. It now functions as a shareholder‑owned corporation operating the national capital market.
* Market infrastructure: Bursa Malaysia provides end‑to‑end services—trading, clearing and settlement, listing regulation, and custody—using an automated trading system.
* Products traded:
* Equities and preferred shares
* Bonds and sukuk (Islamic bonds)
* Derivatives (futures and options)
* Exchange‑traded products (ETFs and ETPs)
* Real estate investment trusts (REITs)
* Shariah‑compliant instruments via its dedicated Islamic market platform
* Indices: The FTSE Bursa Malaysia KLCI (formerly the Kuala Lumpur Composite Index) tracks the 30 largest companies and serves as the exchange’s primary benchmark.

Listing segments
* Main market: For established, larger corporations meeting stricter listing and governance standards.
* ACE market: Targeted at high‑growth and innovative companies with growth potential but less established track records.
* LEAP market: Designed for small and medium enterprises seeking capital with lighter disclosure requirements.

Islamic market and Shariah compliance
* Bursa Malaysia actively promotes Shariah‑compliant capital markets to serve Malaysia’s Muslim majority and international Islamic investors.
* The exchange lists domestic and offshore Islamic assets and maintains processes to screen and certify Shariah‑compliant securities.

Regulation and market developments
* Bursa Malaysia collaborates with regulators (e.g., the Securities Commission) and international exchanges to enhance product offerings, market integrity, and transparency.
* Product evolution: The exchange has considered expanding ETF types and revising short‑selling rules to broaden investor choices—proposals have included futures‑based, leveraged, inverse, physically backed commodity, and synthetic ETFs.
* Short selling: Restrictions historically limited short selling to certain ETF units; regulatory consultations have explored loosening these limits.

Investing considerations
* Foreign investors can access the Malaysian market directly or via mutual funds, ETFs, and American depositary receipts (ADRs) where available.
* Consider market structure, liquidity, currency exposure, and Shariah compliance (if relevant) when evaluating Malaysian securities.
* For exposure to derivatives or sophisticated ETF strategies, review product specifications and regulatory status before investing.

Brief history
* Founded in 1930 as the Singapore Stockbrokers’ Association, the exchange evolved through several names and milestones:
* Public securities trading began in 1960.
* Incorporated as a company in the 1970s.
* Demutualized in the early 2000s, transitioning from member ownership to a shareholder‑owned exchange and adopting the Bursa Malaysia name.
* The exchange later implemented a fully automated trading system to modernize operations.

Sources
* Bursa Malaysia — corporate and market information