Bursa Malaysia today introduced the CDS Straight-Through Processing (CDS-STP) facility for its market participants to better manage transactions performed by Central Depository System (CDS) account holders.
With the rolling-out today of the first phase of the CDS-STP service, subscribing brokers will be able to receive regular updates of their clients' CDS account balances. This will enable clients, especially those who trade through the internet, to keep abreast of their updated CDS account balances, thus minimising the risk of overselling their positions. Subscribing brokers will need to obtain their clients' written consent to receive CDS account balances from Bursa Malaysia under this phase.
Dato' Tajuddin Atan, Chief Executive Officer of Bursa Malaysia, said, "The introduction of CDS-STP is aimed at enhancing the overall efficiency of CDS operations in the industry as it is able to handle high volumes of transactions at increased speed and accuracy. This will reduce operational risks and data entry errors, as well as enhance the interface connectivity between the back offices of market participants and the CDS operations of Bursa Malaysia.
"We have received very encouraging response from the industry. Investors will benefit by having access to timely and updated information on their CDS account balances, while market participants will be able to achieve greater efficiency in their back office operations."
Additionally, under this phase market participants will be provided with information on all securities listed on Bursa Malaysia, which includes details such as stock name, stock code, stock short name, date listed, ISIN code, stock type, board lot size, par value and share registrar's information and subsequent updates to these details.
Bursa Malaysia expects to fully implement the CDS-STP by the end of the year to allow market participants to receive intraday updates on the changes in shareholding positions as well as to automate data entry on selected CDS transactions. The full-fledged CDS-STP service will reduce manual data-entry, shorten turnaround times and facilitate faster data capturing for market participants' back office operations.