Bursa
SBL
Bursa Securities Borrowing and Lending (Bursa SBL) is a facility offered by Bursa Malaysia
Securities Clearing (Bursa Clearing (S)) to enable the borrowing and lending of securities.
Under this framework, Bursa Clearing (S) will act as a Central Lending Agency
(CLA). As the CLA, Bursa Clearing (S) will borrow from lenders and onward lend to borrowers.
Any person who has the requisite number of stocks may lend stocks to the CLA. On the
other hand, only approved Participating Organisations may borrow stocks from the CLA. Any
other person who wishes to borrow stocks must go through the approved Participating
Organisations. The lenders and borrowers must enter into an SBL agreement that will set out
their rights and obligations.
The benefits that can be achieved with the implementation of Bursa Clearing (S) as the CLA
are as follows:
- Guarantee the fulfilment of all SBL transactions;
- Provide a central location for the borrower to find information about the availability of
securities for borrowing;
- Manage risk associated with the borrowings; and
- Provide a central location upon which all information regarding and borrowing and lending of
shares can be obtained
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