The new derivatives clearing and settlement system in Malaysia will be more appealing for sophisticated investors in the region to invest, which will increase liquidity, says Abdul Farid Alias, deputy president and head, Global Wholesale Banking, Maybank.
Malaysian stock exchange Bursa Malaysias new clearing and settlement system went live on Monday, Feb. 27 2012 to provide faster and more efficient clearing and settlement services for its clearing participants and to pave the way for the introduction of new derivative futures and options products.
The system will include a higher capacity for the clearing and settlement of high volume trades; higher automation due to its web-based technology; and functionalities such as online real-time electronic request and approval processes and electronic delivery of documents for physically delivered products, including multi-market and multi-currency settlement features.
Alias says having real time monitoring and information capabilities that support prudent management on participant’s exposure will further boost investors confidence in Malaysia’s derivatives market.
He noted that the new system supports global electronic trading distribution with better straight-through processing functionality and capability. The system also incorporates real time monitoring / information of participant exposure. These capabilities are essential especially in emerging markets, to attract and manage high-frequency and algorithmic traders.”
(JDC)