Bursa Malaysia Berhad ("Bursa Malaysia") introduced ASEAN Post Trade services to its Participating Organisations (POs) for outbound (non-Bursa Malaysia Securities') trades executed on participating ASEAN stock exchanges that are currently on the ASEAN Trading Link. These post trade services are available on subscription basis.
As an extension to the ASEAN Trading Link launched by participating ASEAN Stock Exchanges in 2012, these ASEAN post trade services offered by Bursa Malaysia will facilitate the clearing and settlement of outbound trades executed on the respective participating stock exchanges including safekeeping of the securities traded on participating exchanges of the ASEAN Trading Link, which includes the Singapore Exchange Limited (SGX) and The Stock Exchange of Thailand (SET). Bursa Malaysia will be the single contact point in respect of the clearing, settlement and custody of the foreign securities in relation to their outbound trades executed on any of the participating ASEAN Stock Exchanges.
Through this new platform, POs will receive consolidated positions of their foreign shareholdings with participating ASEAN Exchanges in addition to real time access to these foreign securities via the custody system provided by Bursa Malaysia. This will result in shorter lead time in receiving cross border announcements on corporate actions and entitlements, for example cash dividends.
Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia said, “The introduction of these services is an important landmark for the Malaysian capital market as it allows for more efficient cross border post trade processes and will lower the risk that exists in the current inter-broker arrangements. These services will be implemented progressively for all outbound trades for the remaining ASEAN stock exchanges, as and when an ASEAN Stock Exchange comes on aboard the trading link.”
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© Finextra Research 2014