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BURSA MALAYSIA REVAMPS AND LIBERALISES ITS DERIVATIVES MARKET RULES AND DIRECTIVES TO ENHANCE BUSINESS EFFICIENCY AND FLEXIBILITY OF DOING BUSINESS AMONG TRADING AND CLEARING PARTICIPANTS

14 Aug 2019

Kuala Lumpur, 14 August 2019 – In an effort to enhance business efficiency and flexibility of doing business in the Malaysian derivatives market, Bursa Malaysia Berhad (“Bursa Malaysia”) has revamped the Rules and Directives of Bursa Malaysia Derivatives Berhad (“BMD”) and Bursa Malaysia Derivatives Clearing Berhad (“BMDC”).

With the revamped rules coming into effect on 15 August 2019, Trading Participants and Clearing Participants (collectively, “the Participants”) would be able to reduce their cost of doing business and provide better services to their clients, whilst strengthening their governance framework and providing better investor protection.

To achieve these objectives, the revamped Rules and Directives of BMD and BMDC foster the following improvements:

The revamped rules are in tandem with Bursa Malaysia’s balanced and facilitative approach to promote market development whilst ensuring its regulatory objectives in maintaining market integrity and investor protection are not compromised.  The flexibility and liberalisations put in place under the revamp will enhance the attractiveness and competitiveness of the Malaysian derivatives market. At the same time, it is Bursa Malaysia’s hope that through this revamp, the standards for conduct and governance of the Participants will be elevated and consistent with the equities market, where appropriate. This would in turn  provide better investor protection.

The revamped Rules and Directives of the BMD and BMDC were issued on 28 June 2019. For further information, please visit Bursa Malaysia’s website at www.bursamalaysia.com.