Bursa gets nod on liberalisation of CDS structure


  • Business
  • Friday, 15 Jul 2005

BURSA MALAYSIA BHD said it has received approval from the authorities on the liberalisation of the Central Depository System (CDS) account structure. 

“The move to liberalise CDS account structure is testimony to the proactive efforts on the part of the Malaysian authorities and regulators in promoting an investor friendly trading environment, whereby investors can operate CDS accounts in a more flexible manner,” its chief executive officer Yusli Mohamed Yusoff said in a statement yesterday. 

In conjunction with the CDS account structure liberalisation, the authorities had also approved the increase in the maximum clearing fee payable per contract from RM200 to RM500, whilst maintaining the rate at 0.04% of the contract value. 

Bursa said in the statement that it would work with the Securities Commission (SC) and market participants to implement the above as soon as practicable. 

The actual implementation date will be subject to the approval from SC on amendments to be made to the relevant rules and circulars of relevant Bursa's subsidiaries, it said. 

The impact arising from the liberalisation of the CDS account structure cannot be ascertained at this point. 

However, any adverse impact would be mitigated by the increase in the maximum clearing fee payable per contract, the statement said. – Bernama 

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