IN the second of our seven-part series on initiatives being taken by regional stock markets, Ian Stewart talks to Kuala Lumpur Stock Exchange chairman Nik Mohamed Din Nik Yusoff in an interview on Page 10. Mr Din has expressed confidence in the exchange's future and is certain it can become the second largest regional stock exchange outside Tokyo in terms of market capitalisation. Scripless trading, the launch of the Kuala Lumpur Options and Financial Futures Exchange, and the passing of the Securities Commission Act are examples of recent advances in its quest. However, foreign bankers say the moves are not enough. They rank Kuala Lumpur a poor third as an operational base behind Hong Kong and Singapore, citing Malaysia's protectionist stance to financial services as a major concern. Foreign fund houses can own only 49 per cent of local brokerages if they want access to funds, and changes to this limit are unlikely.