Kuala Lumpur, 23 June 2017

Securities Commission Malaysia (SC) today introduced amendments to its regulatory framework to include clearing for securities and derivatives as a new regulated activity.

This framework will decouple clearing and trading functions into two distinct regulated activities, allowing intermediaries to specialise in their niche services. The entrance of new stand-alone execution and clearing intermediaries, including foreign owned entities, will transform the competitive dynamics of the capital market, and enhance cost efficiency for trading and clearing activities.

The operationalisation of the new framework will take a phase approach, starting with the derivatives market, given the readiness of its market infrastructure to cater to a wider intermediary segment.

In addition, the SC is also broadening the framework for Marketing Representatives across all regulated activities. These marketing representatives will be able to refer clients to their principals within the permissible parameters, provided in the Guidelines for Marketing Representatives.

This framework is in line with SC’s effort to enhance business opportunities of licensed intermediaries and facilitate access to a wider client base.

The changes on Clearing as a regulated activity are outlined in the updated Licensing Handbook, and the relevant guidelines for the Marketing Representatives are available at www.sc.com.my 

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Members of the Media may contact Strategic Communications Department at 03-62048305 (Lau Mei San), 03-62048265 (Delyana Nordin), 03-62048326 (Teoh El Sen) or fax no.: 03-62015078 or e-mail: cau@seccom.com.my

Background information:
Securities Commission Malaysia (SC), a statutory body reporting to the Minister of Finance, was established under the Securities Commission Act 1993. It is the sole regulatory agency for the regulation and development of capital markets. SC has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Capital Markets and Services Act 2007. More information about SC is available on its website at www.sc.com.my. Follow SC on twitter at @SecComMy for more updates.

© Press Release 2017