Bank Negara Malaysia introduces new framework for electronic trading platforms in wholesale markets
Bank Negara Malaysia has issued a new Electronic Trading Platform Framework, which took effect on 1 Nov., replacing the existing 2019 policy. The move resets regulatory requirements for providers of electronic trading services in Malaysia’s wholesale financial markets, particularly the money and foreign exchange markets.
Highlights
- Bank Negara Malaysia introduces a new framework setting requirements and expectations for electronic trading platform operators in Malaysia’s wholesale markets.
- Platform operators must obtain BNM approval before offering electronic trading services, providing greater compliance clarity in the money and foreign exchange markets.
- The framework, first introduced in 2019, has now been updated based on industry feedback to ensure it remains relevant to market developments.
This article was translated from the original. Read the original version by our correspondent here.
New requirements for platform operators
According to The Edge Malaysia, citing a Bank Negara Malaysia statement on Monday, the framework sets out the central bank’s requirements and expectations for market participants providing electronic trading platform services in Malaysia.BNM said eligible platform operators must first obtain the central bank’s approval before offering such services in the domestic market. Operators offering electronic trading services for instruments outside the scope of the framework must obtain the required approvals from the relevant authorities, where applicable.
Impact on Malaysia’s wholesale financial markets
The framework focuses on Malaysia’s wholesale financial markets, particularly the money and foreign exchange market segments, providing platform operators with greater clarity on compliance expectations for electronic transactions.BNM said the framework, first introduced in 2019, was updated following ongoing reviews and feedback from the industry and market participants on electronic trading platform-related matters, to ensure it remains relevant.
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