Bursa Malaysia Adopts Rules That Simplify Its Registration Process for Dealers

Participants trading in Malaysia's financial markets will benefit from a new registration process reducing the time it takes brokers to register with the Exchange . The country’s main Multi-Asset financial trading exchange, Bursa Malaysia (Bursa), reported that it will be deploying Straight Through Processing (STP) for the registration of brokers and dealers. The move supports the exchange’s on-going reforms that strengthen the venue's position as a competitive marketplace.

In a note issued today, the exchange reported that from the first of December Bursa Malaysia will implement Straight Through Processing (STP) for registering individuals such as Dealer’s Representatives, Futures Brokers Representatives and Directors of Brokers.

The new approach will support the processing of new applications. The exchange states in a briefing: “STP will enable a seamless registration process for registering the relevant individuals."

The Bursa has been undergoing significant changes as it aims to compete with neighbour Singapore as a regional financial hub. In 2009 the firm launched a number of initiatives to support the evolution. The exchange launched DMA products for the securities market. It introduced SBL-Negotiated trades, additionally, the exchange introduced Market-Making for Structured Warrants and Exchange Traded Funds.

“This initiative to implement STP on registration was undertaken in line with Bursa’s continuing effort to reduce cost and regulatory friction for its participants as well as improving efficiency of its services and time to market by leveraging on technology," explained the exchange.

Bursa Malaysia has been actively enhancing its systems and controls, last month, Australian entity, Macquarie Capital Securities introduced warrants for retail investors.

Malaysia has been one of the best performing economies in the region, in the first three months of the year its GDP grew over six percent. In addition, the Malaysian government put forward strong measures that support economic growth in the 2015 budget.

Bursa Malaysia's CEO, pictured, Tajuddin Atan, commented about the budget in a statement: "Budget 2015 demonstrates the government’s resolve in making Malaysia a more sustainable and competitive marketplace. As a market in transition, it is important that Malaysia stays on track and continues with the implementation of the planned fiscal policies. We were pleased to see that Budget 2015 recognises the importance of providing relief to businesses and individuals in this transitional period."