Glossary of Malaysian Investment Acronyms

ABS
Asset-Backed Securities

ADA
Authorized Depository Agent (MCD)

ADM
Authorised Direct Members (MCD)

AG
Accountant General (Ministry of Finance, Government of Malaysia)

AGM
Annual General Meeting

AML
Anti-Money Laundering

AMLA
Anti-Money Laundering Act 2001

AMLATFA
Anti Money Laundering and Anti-Terrorism Financing Act 2001

AML/CTF
Anti-Money Laundering/Counter Financing of Terrorism

APEC
Asia-Pacific Economic Cooperation

ASB
Amanah Saham Bumiputera (subsidiary of PNB)

ASN
Amanah Saham Nasional (subsidiary of PNB)

ASEAN
Association of South-East Asian Nations

AUM
Assets Under Management

AWAS
Advanced Warning and Surveilance System

BAFIA
Banking and Financial Institutions Act 1989

BC
Banker’s Cheque

BG
Bank Guarantee

BGB
Bank Guaranteed Bonds

BI
Bonus issue

BIDS
Bonds & Information Dissemination System (BNM)

BIS
Bank for International Settlements

BLR
Base Lending Rate - minimum interest rate calculated by banking institutions based on a formula which takes into account the institutions' cost of funds and other administrative costs.

BNB
Bank Negara Bills (issued by BNM)

BNM
Bank Negara Malaysia (Malaysia's Central Bank)

BNN
Bank Negara Notes (issued by BNM)

bps
Basis points, e.g. 10bps is 0.1%

BSE
Bumiputera Stock Exchange

CADI
Cumulative Advance / Decline Indicator

CAGAMAS
Malaysian National Mortgage Corporation

CAGR
Compound Annual Growth Rate

CAR
Capital Adequacy Ratio

CARDS
Certificates for Amortizing Revolving Debts

CCIRS
Cross Currency Interest Rate Swap

CCM
Companies Commission of Malaysia

CDO
Collaterized Debt Obligations

CDRC
Corporate Debt Restructuring Committee (BNM)

CDS
Central Depository System - operated by MCD, a computerised system for the central handling and deposit of shares and other securities traded on Bursa Malaysia. CDS was launched in 1992, and fully implemented by 1996.

CDS
Credit Default Swap

CFA
Chartered Financial Analyst - an international professional designation offered by the CFA Institute of USA, for finance and investment professionals, particularly in the fields of investment management, investment banking and financial analysis of stocks, bonds and their derivative assets.

CIC
Capital Issue Committee

CLOB
Central Limit Order Book

CMDF
Capital Market Development Fund

CMO
Collateralized Mortgage Obligation

CMP
Capital Market Masterplan (SC)

CRM
Customer Relationship Management

CTR
Cash Threshold Reports (for AML)

D/E
Debt/ Equity Ratio

DVP
Delivery Versus Payment - service offered by SCANS in 1999 for institutional investors

DY
Dividend Yield

EAFE INDEX
The Europe, Australasia & Far East Index

EALIS
External Assets & Liabilities Information System - BNM's system to facilitate report on external assets & liabilities position of banking and non-banking sector

EBIT
Earnings before Interest and Taxes

EBITDA
Earnings before Interest, Taxes, Depreciation and Amortization

ECM
Exchange Control of Malaysia (Exchange Control Rules from BNM)

ECOS
Electronic Client Ordering System

EDMS
Electronic Documents Management System

EFT
Electronic Funds Transfer

EGM
Extraordinary General Meeting

EMAS
Exchange Main Board All Share Index - launched in 1991

EMBI
Emerging Markets Bond Index

EPF
Employees Provident Fund or KWSP

EPS
Earnings Per Share

ERM
Enterprise Risk Management

ESOS
Employees Share Option Scheme

ETF
Exchange Traded Fund

ETP
Electronic Trading Platform

EVA
Economic Value Added

FAST
Fully Automated System for Tendering - BNM's automated system for tendering, bids submission and processing of tender for scripless securities in the Malaysian debt securities market.

FATF
Financial Action Task Force (AML)

FCPO
Crude Palm Oil Futures

FDSS
Fixed Delivery and Settlement System - introduced to bring about a more efficient clearing and settlement system

FIA
Futures Industry Act 1993

FIBV
Federation Internationale des Bourses de Valeurs

FIC
Foreign Investment Committee

FIDS
Fraud Information Database System - BNM's repository of all fraud and attempted fraud cases reported by the financial institutions, and frauds detected and investigated by BNM

FINS
Financial Intelligence System - BNM's reporting system developed to cater for submission of Suspicious Transaction Reports (STRs) and Cash Threshold Reports (CTRs) from reporting institutions.

FKB3
3-Month Kuala Lumpur Interbank Offered Rate Interest Rate Futures

FKLI
Kuala Lumpur Composite Index Futures

FLR
Front-line regulator

FMCG
Fast Moving Consumer Goods (Industry)

FMG3
Three-Year Malaysian Government Securities Futures

FMG5
Five-Year Malaysian Government Securities Futures

FMGA
Ten-Year Malaysian Government Securities Futures

FMUTM
Federation of Malaysian Unit Trust Managers

FPKO
Crude Palm Kernel Oil Futures

FPX
Financial Process Exchange (facility for payment or transfer of funds via the Internet provided by MEPS)

FRA
Forward Rate Agreement - a contractual agreement between two parties to fix the rate of interest for a future period on a specified notional principal, such as a loan or deposit. A FRA is used to hedge an asset or liability. It is also a widely used instrument for investment, trading and arbitraging.

FRS
Financial Reporting Standards - issued by the Malaysian Accounting Standards Board

FSA
The Financial Services Authority (UK)

FSMP
Financial Sector Master Plan (issued by BNM)

FT
Funds Transfer

FTSE
Financial Times Stock Exchange Index

FTT
Foreign Currency Telegraphic Transfer

GCP
General Clearing Participant - existing clearing Participants (Futures Brokers) of Bursa Malaysia allowed to clear Ethylene OTC Futures for clients

GDY
Gross Dividend Yield

GIA
General Investment Account

GII
Government Investment Issues - similar to MGS but are issued based on Islamic principles (issued by BNM)

GIPS
Global Investment Performance Standards - a globally recognised collection of ethical guidelines drawn up by the CFA Institute for uniform and modern performance reporting within asset management.

GLC
Government-Linked Company

GO
General Offer

IB
Investment Bank

IBFF
Inter-Broker Fidelity Fund

IBFIM
Islamic Banking and Finance Institute Malaysia Sdn. Bhd.

IBG
Interbank GIRO (MEPS) - An electronic funds transfer payment system for interbank payments up to a maximum of RM100,000 per transaction

IBS
Islamic Brokerage System

ICM
Islamic capital market

ICP
Islamic Commercial Papers

ICULS
Irredeemable Convertible Unsecured Loan Stock

ICUN
Irredeemable Convertible Unsecured Notes

IFRS
International Financial Reporting Standards

IIFM
International Islamic Financial Market

IIMM
Islamic Interbank Money Market

IOFC
International Offshore Financial Centre

IOSCO
International Organization of Securities Commissions

IPC
Infrastructure Project Companies

IPO
Initial Public Offering

IPP
Independent Power Producer

IPRE
Income-producing Real Estate

IR
Investor Relations

IRR
Internal Rate of Return

IRS
Interest Rate Swap. IRS transaction is a contract between two parties to exchange interest rate payments (cash flows) at a future date. It allows the flexibility to convert a fixed rate asset/liability to a floating rate asset/liability and vice versa. There are basically two types of swaps which are traded daily by most markets - interest rate swaps (IRS) and currency swaps.

ISB
Islamic Stockbroking - AmInvestment is the second bank to set up an ISB unit in the country after Bank Islam Malaysia Bhd.

ISIN
International Securities Identification Number

ITC
Investment Tax Credit

IVR
Interactive Voice Response - a phone technology that allows a computer to detect voice and touch tones using a normal phone call

KLCCH
Kuala Lumpur Commodities Clearing House

KLCE
Kuala Lumpur Commodity Exchange - which was merged with Malaysia Monetary Exchange (MME) to form COMMEX. COMMEX subsequently merged with KLOFFE in 2001 to form MDEX (now known as Bursa Malaysia Derivatives)

KLCI
Kuala Lumpur Composite Index or KLSE Composite Index

KLIBOR
Kuala Lumpur Inter Bank Offered Rate

KLOFFE
Kuala Lumpur Options and Financial Futures Exchange - which began operations in 1995 has subsequently been merged with COMMEX in 2001 to form MDEX (now known as Bursa Malaysia Derivatives)

KLSE
Kuala Lumpur Stock Exchange (Bursa Malaysia)

KLSE CI
KLSE Composite Index - launched in 1986

KWSP
Kumpulan Wang Simpanan Perkerja or Employees Provident Fund

KYC
Know Your Customer (Policy) required under AMLA

Labuan IOFC
Labuan International Offshore Financial Centre

LFX
Labuan International Financial Exchange (Bursa Malaysia)

LHDN
Lembaga Hasil Dalam Negeri (Inland Revenue Board)

LIBID
London Interbank Bid Rate

LIBOR
London Interbank Offered Rate

LIFFE
London International Financial Futures Exchange

LME
London Metal Exchange

LO
Licensing Officer

LOFSA
Labuan Offshore Financial Services Authority

LOSR
Location of Share Registrars

LSE
London Stock Exchange

M&A
Memorandum & Articles of Association or
Mergers & Acquisitions

MARC
Malaysian Rating Corporation Berhad

MASA
Maklumat Saham (“share information”) was introduced in 1987, and MASA II was introduced in 1990. In 1994, WinStock which is a more integrated information system replaced MASA II.

MASB
Malaysian Accounting Standards Board

MAVCAP
Malaysia Venture Capital Management Bhd

MBO
Management Buy Out

MCD
Malaysian Central Depository Sdn Bhd - set up in 1990 to operate scripless trading through the Central Depository System (CDS) - a computerised system for the central handling and deposit of shares and other securities traded on Bursa Malaysia.

MECD
Ministry of Entrepreneur and Coorperative Development

MEPS
Malaysian Electronic Payment System Sdn Bhd - A consortium set up by domestic banking institutions to provide shared banking services, such as shared ATM network and Interbank GIRO.

MESDAQ
Malaysian Exchange of Securities Dealing and Automated Quotation

MFBA
Malaysian Futures Brokers Association

MGO
Mandatory General Offer

MGS
Malaysian Government Securities - long term papers issued on conventional basis by the Malaysian Government to manage the economy. MGS Floating Securities are issued based on spread basis.

MIDF
Malaysian Industrial Development Finance

MIDFCCS
MIDF Consultancy and Corporate Services Sdn Bhd

MIER
Malaysian Institute of Economic Research

MIFC
Malaysia International Islamic Financial Centre

MIH
Malaysian Issuing House

MLR
Minimum Lending Rate

MM
Money Market

MME
Malaysia Monetary Exchange - which was merged with KLCE to form COMMEX. COMMEX subsequently merged with KLOFFE in 2001 to form MDEX (now known as Bursa Malaysia Derivatives)

MoF
Ministry of Finance

MoM
Month on Month

MoU
Memorandum of Understanding

MSCI
Morgan Stanley Capital International

MTB
Malaysian Treasury Bills

MTDC
Malaysian Technology Development Corporation

MTM
Mark-to-Market - Daily evaluation of open futures contract(s) that an investor holds to reflect profit / losses. All futures positions are marked-to-market using the settlement price.

MTN
Medium Term Notes

MYKAD
Malaysian National Identity Card

NASDAQ
National Association of Securities Dealers Automatic Quotation

NAV
Net Asset Value

NCD
Negotiable Certificate of Deposit

NID
Negotiable Instrument of Deposit, is a financial instrument issued by banks for the deposit of a specific sum of money for a fixed period of time at a prefixed interest rate. An NID can be bought or sold before the date of maturity.

NIDC
Negotiable Islamic Debt Certificate is the Shariah-based alternative to the Negotiable Certificate of Deposit (NCD), using e.g. using the concept of Al-Mudharabah (profit-sharing) or Al-Bai Bithaman Ajil (Deferred payment sale)

NOI
Net Operating Income

NOPAT
Net Operating Profit after Tax

NTA
Net Tangible Assets

NYSE
New York Stock Exchange

O&G
Oil and Gas (Industry)

OECD
Organisation for Economic Co-operation and Development

OFS
Offer for sale

OI
Open Interest - number of futures contracts that are yet to be closed-out

OKLI
Kuala Lumpur Composite Index Options

OPR
Overnight Policy Rate (set by Bank Negara’s Monetary Policy Committee)

OTC
Over-the-counter

PAL
Provisional Allotment Letter

PDS
Private Debt Securities

PE or P/E
Price to earnings ratio

PF
Project Finance

PLC
Public-listed company

PNB
Permodalan Nasional Berhad

QoQ
Quarter on Quarter

RAM
Rating Agency Malaysia Berhad

REIT
Real Estate Investment Trust

RENTAS
Real Time Electronic Transfer of Funds & Securities - BNM's system for electronic funds transfer, replacing SPEEDS. Minimum amount per transmission is RM10,000 except if the Remitting party is a government body.

REPO
Repurchase Agreement - the bank sells its money market instruments approved by Bank Negara Malaysia to an investor, with an understanding to buy back the said instruments at an agreed price (interest rate) on a specific future date.

RI
Rights issue

RIIAM
Research Institute of Investment Analysis Malaysia

ROC
Registrar of Companies - The public official appointed to administer the Companies Act 1965 and the Securities Industry Act 1983.

ROS
Restricted offer for sale

RSB
Redeemable Secured Bonds

RUB
Redeemable Unsecured Bonds

RULS
Redeemable Unsecured Loan Stock

SAC
Syariah Advisory Council

SBI
Second Board Index

SBL
Securities Borrowing and Lending

SC
Securities Commission - a statutory body reporting to the Minister of Finance, was established under the Securities Commission Act 1993. It is responsible for the regulation and development of capital markets in Malaysia through the Securities Commission Act 1993, Capital Markets and Services Act 2007 and Securities Industry (Central Depositories) Act 1991. The SC is a self-funding statutory body with investigative and enforcement powers, and reports to the Minister of Finance.

SCA
Securities Commission Act 1993

SCANS
Securities Clearing Automated Network Services Sdn Bhd (Bursa Malaysia) - computerised central clearing house formed in 1984.

SCORE
System on Computerised Order Routing and Execution - implemented in 1989 to replace the outcry system and the trading floor at the stock exchange's premises. The fully automated trading and matching was introduced in 1992.

SCP
Special Clearing Participant - companies involved in the trading of ethylene product

SDR
Special Drawing Rights

SEC
U.S. Securities and Exchange Commission

SGX
Singapore Exchange Limited - inaugurated on 1 December 1999, following the merger of the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX).

SIA
Securities Industry Act 1983 - The Act of Parliament governing the business of dealing in securities, stock exchanges and related matters in Malaysia.

SICDA
Securities Industry (Central Depositories) Act 1991

SIDC
Securities Industry Development Centre (established by the SC)

SMF
Share Margin Financing

SMI
Small and Medium-sized Industry

SPV
Special Purpose Vehicle

SSF
Single Stock Futures

SRI
Socially Responsible Investing (Strategy)

SRR
Statutory Reserve Requirement

STR
Suspicious Transaction Report (for BNM required under AMLA)

SWF
Sovereign wealth funds

SWIFT
Society for Worldwide Interbank Financial Telecommunication - operates a worldwide financial messaging network allowing financial institutions to securely and reliably exchange financial transactions.

TSR
Transferable Subscription Rights

UB
Universal Broker

UT
Unit Trust

VCC
Venture capital company

VCMC
Venture capital management company

WACC
Weighted Average Cost of Capital

WEBS
World Equity Benchmark Shares

WinSCORE
Broker Front-End System - Windows version of SCORE (Bursa) launched in 1994 allowing each dealer to have a single integrated workstation which incorporates order-entry as well as real-time price information.

WTO
World Trade Organisation

YoY
Year on Year

YTD
Year to-date

YTM
Yield to Maturity (bonds)