1. What is Labuan International Financial Exchange (LFX)?
2. What are the financial instruments to be listed?
3. Who owns LFX?
4. How is LFX governed?
5. What is the organization structure of LFX?
6. How is LFX different from KLSE and the other exchanges in Malaysia?
7. How is LFX compared to other offshore exchanges?
8. Who can participate in Labuan International Financial Exchange?
9. How does Malaysia's Exchange Control Measures affect Labuan International Financial Exchange?
10. How is KLSE's involvement in LFX?

To attain this goal, LFX will strive:

1. To be recognised as investor-friendly
2. To be market driven and transparent
3. To utilise international networking systems

2. What are the financial instruments to be listed?

LFX, being an offshore exchange will facilitate the listing of a multitude of financial instruments such as:

1. equities
2. investment funds
3. debt instruments
4. insurance related instruments
5. other types of financial instruments (depending on requirement and demand of issuers and investors)

These financial instruments can be based on both conventional and Islamic principles.

There are no restrictions on the type of financial instruments and there is no predetermined minimum quantity for listing. The decision for listing lies with the Listing Committee of LFX.The financial instruments will be initially denominated in US Dollars.

At present, the Bursa Malaysia Berhad (Bursa) is the sole owner of LFX.

The authorised and paid-up capitals are US$10 million and US$5.5 millions respectively.

5. What is the organisation structure of LFX?

1. A General Manager will be responsible for managing the day to day operations of LFX.
   
   
2. LFX is managed by an Exchange Committee comprising representatives of the shareholder and market participants. The Committee will address and handle all operational aspects of LFX.
   
   
3. Discretionary matters pertaining to Licensing, Listing and Disciplinary will come under the purview of the respective specific Committees.
   

The organisational structure of LFX is divided into three major units i.e. Market Development, Operations and Support Services. Market Development will handle matters pertaining to the customers of the Exchange including developing and marketing of the offshore exchange business. Operations is responsible of the operational activities, that includes licensing, listing, trading, settlement, clearing, depository, business continuity plan of the offshore exchange and other operational related activities and also perform the supervising and monitoring of market players to ensure compliance with the Exchange's Rules and Regulations. Support Services will provide support functions such as IT Support, finance and administration to LFX.

6. How is LFX different from Bursa Malaysia and the other exchanges in Malaysia?

It is an offshore exchange that seeks to meet the requirements of international clientele. Unlike Bursa and other exchanges, LFX is governed by the LOSIA 1998. As it is based in an offshore jurisdiction, participants will benefit from various tax incentives and exemptions.

1. Issuers of Financial Instruments to be Listed
   1. Each Issuer has to appoint a Listing Sponsor for each listing on LFX.
   2. Listing advisory, consultation and underwriting expenses will be levied by Listing Sponsors at their discretion.
   3. LFX adopts a disclosure-based policy whereby Issuers will be required to disclose all relevant and material information.
      
      
2. Listing Sponsors
   1. Listing Sponsors are responsible for :
      1. Ensuring financial instruments to be listed meet the qualitative and quantitative criteria set by LFX.
      2. Ensuring proper disclosures are made by Issuers, as part of their post-listing obligations.
      3. Acquisition of equipment and other resources required to perform their function.
         
         
   2. A Listing Sponsor can undertake multiple listing exercises.
   3. Listing Sponsors will be licensed by LFX. iv. Listing Sponsors with the capability and financial capacity may underwrite the listing of the financial instruments.
   4. Issuers and Sponsors may be in different geographical locations and time zones and need not have physical presence in Labuan.
   5. Fees between Issuers and Listing Sponsors are negotiable between the two parties as LFX does not regulate back office dealings between its participants.
   6. Listing Sponsors may also be Trading Agents and vice-versa if they meet LFX's set criteria.
      
      
3. Trading Agents
   1. Trading Agents are responsible for :
      1. Execution of trades on behalf of Investors.
      2. Acquiring equipment and other resources for trading purposes.
      3. Reporting all trades done to LFX for trade confirmation.
      4. Ensuring all trades done are settled according to the rules of LFX.
      5. Providing investment advice to investors.
         
         
   2. Trading Agents will be licensed by LFX.
   3. Trading Agents may undertake proprietary trading.
      
      
4. Investors
   1. Investor participation in LFX is through licensed Trading Agents. All trades and settlement of trades done will be done through Trading Agents.
   2. Charges for trading services rendered to investors by Trading Agents will be at their discretion.
   3. Investors need to evaluate the risks and merits of their investments based on disclosures made by Issuers. Trading Agents and Investors may be in different geographical locations and time zones and need not have physical presence in Labuan.

10. How is Bursa's involvement in LFX?

LFX is 100% owned by Bursa Malaysia Berhad. Bursa is represented in the board of directors of LFX by its present Chief Executive Officer Dato’ Yusli Mohamed Yusoff and Bursa’s Chief Operating Officer Mr. Omar Merican. Its scope of work will include policy matters and budgetary controls.