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The Star
29-07-2025
- Business
- The Star
Bursa Malaysia posts weaker revenue in 1H on securities trading slump
KUALA LUMPUR: Lower trading volume on Bursa Malaysia Bhd 's securities market dragged on operating revenue in the first half of 2025 (1HFY25), the stock exchange said in its results announcement today. However, the decline in revenue from securities trading was partially mitigated by improved revenue contribution from other business segments. 'Except for our securities market, all business segments saw revenue in 1H25 rise year-on-year (y-o-y). "This reflects the importance of the Exchange's strategy to diversify revenue lines by enhancing our offerings across multiple asset classes,' said Datuk Fad'l Mohamed, CEO of Bursa Malaysia, in a statement. In the second quarter ended June 30, 2025 (2QFY25), Bursa Malaysia's net profit dropped to RM57.06mil from RM80.45mil in the previous corresponding quarter, which translated to a lower earnings per share of 7.1 sen as compared to 9.9 sen previously. The group's revenue during the quarter dipped to RM172.58mil from RM199.94mil in 2QFY24. For 1HFY25, Bursa Malaysia's net profit fell to RM125.48mil from RM155.48mil in 1HFY24, while revenue narrowed to RM356.96mil from RM387.14mil in the comparative period. Apart from the lower revenue reported in the securities market, the bourse said operating expenses were also up 6.6% during the six-month period to RM189.3mil, against RM177.6mil in 1HFY24. The board of directors declared an interim dividend of 14 sen per share with ex and payment dates on Aug 19 and Aug 27, 2025, respectively. According to the stock exchange operator, there was a 24.8% y-o-y decline in average daily traded value (ADV) for on-market trades to RM2.5bil in 1H25, wich dragged on operating revenue in the securities market. "Global developments, including the US' ongoing tariff negotiations with its trading partners and persistent geopolitical tensions, impacted market sentiment and weighed on equity markets," it said. This was in contrast to the derivatives market, which saw an 8.1% y-o-y increase in trading revenue to RM56.1mil. The improved revenue was mainly owing to higher average daily contracts (ADC) traded for crude palm oil futures, said the Exchange, while noting the launch of Single Stock Futures in 1HFY25 to grow the derivatives business. Meanwhile, the Islamic market recorded a 23% y-o-y increase in operating revenue to RM11mil, mainly on the back of higher Bursa Suq Al-Sila' (BSAS) trading revenue of RM9.6mil in 1H25. Operating revenue from the data business segment increased 6.4% y-o-y to RM40.5mil in 1HFY25 from RM38mil in 1HFY24, as a result of licensing subscriptions expansion, driven by rising demand for high-quality, actionable data across financial and sustainability domains. Fad'l said Malaysia's capital market remains resilient and supported by strong economic fundamentals, accommodative monetary policies and clear government policies. "We are committed to advancing Bursa Malaysia as a Multi-Asset Exchange under our Strategic Roadmap 2024–2026. "Our key focus areas include being the fundraising platform of choice for businesses, improving market vibrancy and liquidity, as well as exploring fresh ways to propel the data business," he said. He added that the bourse will continue to monitor global developments and market impact with the headline key performance indicators introduced earlier this year as a guide.
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Business Standard
11-07-2025
- Business
- Business Standard
NSE, BSE shares drop amid declining trading volumes, regulatory concerns
Shares of Indian stock exchanges – BSE and National Stock Exchange (NSE) – slumped this week as regulatory scrutiny on high-frequency traders sparked concerns over drop in turnover and eventually their profitability. Since the Securities and Exchange Board of India's (Sebi's) ban on US trading firm Jane Street on July 3 derivatives trading turnover has declined by a fifth. BSE Ltd shares fell nearly 16 per cent from July 3 levels following the ban on US-based proprietary trader Jane Street for alleged index options manipulation. The stock closed at ₹2,376 on Friday, down 3.7 per cent over its previous day's close, reducing its market capitalisation to ₹96,650 crore. This has reduced NSE's market value to ₹5.43 trillion. Its shares had previously rallied to ₹2,400 amid optimism over its initial public offering (IPO) as the bourse neared a settlement with regulators in a protracted legal case involving lapses at its colocation facility. 'The sharp fall in NSE and BSE shares this week is a mix of short-term noise and shifting market dynamics. The change in the derivatives' expiry dates has unsettled traders a bit. At the same time, Sebi's recent action against Jane Street has added to the caution. There is a concern that tighter rules have also raised fears that F&O turnover could shrink further,' said Trivesh D, chief operating officer at Tradejini. On the first expiry of Nifty weekly contracts since the ban on US-based high frequency trading firm, the total turnover on the National Stock Exchange (NSE) dropped 21 per cent compared to the previous expiry day. 'The key unknown is whether this instance can lead to a knock-on impact on trading volumes, and we feel that trends over the next week on derivatives volumes will be key to watch, especially the index derivatives expiries on Tuesday and Thursday,' noted Jefferies. The research firm added that proprietary traders and HFTs may see a manageable impact from the exit of Jane Street as manipulative factors potentially reduce. 'Hedge funds largely operate with larger positions in Single Stock Futures and their trading in options is limited,' added Jefferies, noting that the exit by Jane Street may have a limited impact on the earnings of BSE.
News18
08-07-2025
- Business
- News18
BSE Declines 13% Since SEBI's Jane Street Action; What's The Connection?
Last Updated: Shares of BSE Ltd tumbled over 4% as investors continued to offload their shares amid regulatory overhangs and valuation concerns Why Is BSE Stock Falling? Shares of BSE Ltd tumbled nearly seven per cent in trade on Tuesday, July 8, as investors continued to offload their shares amid regulatory overhangs and valuation concerns. Further, capital market stocks also saw significant selling pressure, even as Dalal Street extended its sideways movement. BSE shares have also taken a 13 percent tumble since the markets regulator, Securities and Exchange Board of India (SEBI), cracked down on proprietary trading firm Jane Street, alleging that the foreign portfolio investor used manipulative strategies to profit from the indices. SEBI also restrained Jane Street Group from accessing the local securities market, dealing a severe hit to the US trading firm that generated more than $2.3 billion in net revenue from equity derivatives in the South Asian nation last year. At 10.10 a.m., BSE's stock price was quoting Rs 2,536, lower by 3.8 per cent compared to the previous session's closing price. The capital markets pack was also lagging, with Angel One, CDSL, and 360 ONE WAM shares sinking up to 3.5 per cent. ICICI Securities has raised caution over BSE shares, citing multiple headwinds including regulatory restrictions, the recent change in the derivatives expiry day, and elevated valuation multiples. The brokerage also pointed out that BSE's premium average daily turnover (ADTV) dropped 12.4% month-on-month to Rs 13,900 crore in June, following sharp increases in April and May. 'While we remain constructive on the company's long-term fundamentals, we believe the current valuations already reflect its medium-term growth prospects. At current price levels, BSE trades at over 45x FY27E core EPS, which appears stretched, especially in light of potential regulatory risks," the brokerage noted. It added that the earnings impact on BSE is likely to be minimal, given that foreign portfolio investors (FPIs) contribute just 3–4% of derivatives turnover. The effect may be more pronounced for Nuvama, which was Jane Street's Indian trading partner. According to Jefferies, there's no counterparty risk from Jane Street's open positions, as these are backed by clearing corporations and the firm has up to three months to wind down its trades. It also noted that hedge funds typically hold larger exposures in Single Stock Futures (SSFs), with a more limited presence in options. The brokerage further explained that Jane Street operated both as an FPI and a trading member in Indian markets, meaning its volumes were counted under both FPI and proprietary categories. 'Since SEBI's investigation had been underway for some time, Jane Street's trading activity had already declined over the past few months," it added. Citing exchange data, Jefferies highlighted that FPIs typically account for 3–8% of equity derivatives turnover, with proprietary traders contributing a dominant 60–65%. The rest comes from individual and other participants. The key uncertainty now, Jefferies said, is whether this episode will have a broader impact on overall trading volumes. 'Next week's trend in derivatives volumes will be critical, especially with index derivatives expiries scheduled for Tuesday and Thursday," it said. On a positive note, index options premium turnover was slightly higher week-on-week on both exchanges last Friday, though still marginally below the two-month average. Derivatives contribute nearly 58% of BSE's estimated revenues for FY26. Within this segment, FPIs drive just 3–4% of turnover, and Jane Street's share is estimated at only 1%. 'Hence, the earnings impact on BSE is likely to be limited. A 100 basis point hit to our FY26 premium estimates would reduce EPS by only 60–70 basis points," Jefferies concluded. Disclaimer:Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
