THE implementation date for the new minimum commission rates to be adopted by the stockbroking industry has been deferred by a week to May 19, the Association of Stockbroking Companies Malaysia (ASCM) said yesterday. The deferment was due to a delay in determining the final minimum commission rates for interbroker trades following concerns raised by foreign brokers.
A statement from the ASCM said its members had studied and discussed at length the concerns raised, and had since reverted to the Securities Commission (SC) with a proposal.
Due to this unavoidable delay in determining the rates, the members of the ASCM have requested the SC for an extension of the implementation date, which the SC has approved.
This extension will also allow our members sufficient time to reconfigure their back-office systems, and to brief their paid dealer representatives and remisiers on the rules, parameters and policing mechanisms encasing the minimum brokerage structure, the ASCM said. The KLSE was expected to release details of these rules, parameters and policing mechanisms once they were endorsed by the SC.