Securities Clearing & Settlement
Overview
Bursa Malaysia Securities Clearing Sdn Bhd (BMSC) is an approved Clearing Houses under Capital Market Services Act (CMSA) and provide clearing & settlement services for the securities market. BMSC clears and settles equities transactions executed on Bursa Malaysia Securities Bhd.
BMSC provides, operates and
maintains a clearing house for the securities exchange.
Settlement of market contracts include:
- On-Market Transaction which consists of the stock broking companies
- Direct Business Transaction mainly comprises of custodian bank
There are 2 types of Clearing Participants registered with BMSC:
- Trading Clearing Participant (TCP) which consists of the stock broking companies.
- Non Trading Clearing Participant (NTCP) mainly comprises of custodian banks.
BMSC conducts a T+2 settlement cycle which was implemented on 29 April 2019. Delivery and settlement of securities shall be effected via electronic book entry share settlement. Financial settlement of securities shall be on a net basis between the Clearing House and the Clearing Participants.
Buying-in shall be instituted against the Trading Clearing Participant that failed to deliver securities for settlement on the settlement day. The buying-in period for board lot failed trade is from 2.00pm to 5.00pm, failing which it will be cash settled on next business day. Failed trade in odd lots shall be settled by cash on the settlement date.