MALAYSIA - Capital Market Infrastructure Summary

Central Securities Depositories
Bursa Malaysia

BIS Model
Model 2: Listed securities
Model 1: Government bonds

Settlement Cycle
T+3 for Bursa Securities-listed
T+2 for SSTS-eligible

Bursa Malaysia (formerly Kuala Lumpur Stock Exchange) operates a Central Depository System (CDS) for securities traded on Bursa Malaysia and cleared through Bursa Malaysia Securities Clearing Sdn Bhd. CDS is operated by a wholly-owned subsidiary, Bursa Malaysia Depository Sdn Bhd, and uses a simple book entry system to keep track of the movement of shares. Sellers must have adequate shares in their CDS accounts by 12:30 on T+2 and buyers' shares accounts are credited on T+3. Cash settlement takes place on a net basis. Malaysia Electronic Clearing Corporation Sdn Bhd (MyClear) operates a Scripless Securities Depository System (SDSS). SDSS is an on-line book entry system that effects and records the settlement of securities traded in its Real Time Electronic Transfer of Funds and Securities (RENTAS), i.e. Government securities, Bank Negara Malaysia (BNM) paper, and unlisted corporate bonds. As well as having the advantage of dematerialised scrips, securities and cash settlement take place on a delivery versus payment (DVP) basis (simultaneously in real-time) on a gross basis on T.

Key terms defined in our glossary:

Central Securities Depository
BIS Model 2
BIS Model 1
Settlement Cycle

The above information is written as a general guide only and is subject to change. Please refer to our 'Terms' page for more details.