27 June 2019
On 16 May 2019, Bank Negara Malaysia (“BNM”) issued a press release announcing further development initiatives aimed at improving market efficiency, accessibility and liquidity in the domestic financial market, while preserving an orderly and transparent onshore financial market. The development initiatives include:
- increasing availability of off-the-run bonds to be borrowed via repo for market-making activities;
- collaboration with Securities Commission Malaysia and Bursa Malaysia to further develop an effective hedging platform for investors;
- allowing trust banks and global custodians to apply under the dynamic hedging programme introduced in December 2016 to undertake dynamic hedging on behalf of their underlying clients; and
- foreign exchange transactions and documentation processes will continue to be improved and simplified.