KUALA LUMPUR: Bursa Malaysia Bhd posted a net profit of RM290.3mil in the nine months period ended Sept 30, 2021, a 6.38% increase compared to RM272.89mil in the same period a year ago on improved contribution from both trading and non-trading segments.

       A filing with Bursa Malaysia revealed the stock exchange operator's revenue for the period was up 6% to RM602.36mil from RM568.27mil in the previous corresponding period.

       In a statement, it said operating revenue rose 6.5% year-on-year (y-o-y) to RM590mil.

       Meanwhile, total operating expenses in the three quarters rose 6.4% to RM213.2mil, mainly due to higher staff costs and corporate social responsibility expenditure.

       For the third quarter alone, Bursa Malaysia recorded a net profit of RM79.94mil, a 34% decrease from RM121.94mil in the same quarter a year ago while revenue fell 26.82% y-o-y to RM173.98mil.

       "While key economic indicators are pointing towards an improving outlook for the Malaysian economy, the ongoing developments of the COVID-19 pandemic will continue to influence the volatility and performance of the equity market," said Bursa Malaysia CEO Datuk Muhamad Umar Swift in a Friday statement.

       According to Bursa, trading revenue during the period was up 3.1% to RM359.9mil due to a higher effective clearing fee rate, which rose to 2.73 basis points from 2.57 basis points in 9M2020.

       The higher Institutional Settlement Service fees earned also contributed to the growth.

       Non-trading revenue from listing and issuer services meanwhile also recorded an increase to RM52.3mil as compared to RM40.1mil in the same period last year, underpinned by the higher fees earnings from the higher number of corporate exercises and structured warrants listed.

       In the derivatives market, total average daily contracts increased 3.3% to 76,836 contracts compared to 74,408 contracts.

       Derivatives trading revenue however fell 4.9% to RM65.8mil from RM69.2mil in 9M2020 mainly due to lower collateral management fees from the reduced fee rate and lower trade fees earned.

       As for the Islamic Markets, trading revenue for Bursa Suq Al-Sila’ in 9M2021 increased 4.7% to RM10.1mil from RM9.6mil in 9M2020.

       Other revenue streams that contributed to the growth include depository services, market data and member services and connectivity.

       "Despite the challenges, we are well-positioned to continue developing the marketplace and expand our ecosystem through various product offerings such as the recent introduction of the East Malaysia Crude Palm Oil Futures (FEPO) contracts.

       "In addition, the expected rollout of the after-hours (T+1) trading session for the Derivatives Market Night Trading by the

       fourth quarter of 2021 will offer greater accessibility and enhance the attractiveness of the Malaysian derivatives market to global players,” said Muhamad Umar.