Bank of China Malaysia completes first renminbi margin collateral on Bursa

KUALA LUMPUR: Bank of China Malaysia recorded the first margin collateral in renminbi terms in Bursa Malaysia Derivatives.

Busa Malaysia Derivatives chairman Datuk Tajuddin Atan said the bank had on Friday completed the first transfer of the margin collateral to its customer Oriental Pacific Futures Sdn Bhd.

Bank of China Malaysia was appointed as a clearing bank by the exchange in April 2015 to settle all the nine margin currencies. Oriental Pacific Futures is a Kuala Lumpur-based futures brokerage firm.

Tajuddin said the appointment of Bank of China Malaysia as the clearing bank for the renminbi currency in April this year had paved the way for the exchange to offer participants opportunities arising from the internationalisation of the renminbi. 

“The inclusion of the renminbi in our suite of margin collateral currencies is a necessary move given China’s position as one of the world’s most significant commodities consumers compounded by the growing adoption of renminbi as a currency in global trade and investment.”

Bank of China Ltd executive vice president Zhu Hexin said clearing of the first RMB margin collateral in Bursa Derivatives Malaysia is a new milestone achieved in Bank of China’s RMB global services. 

Importantly, Bank of China’s appointment as a settlement bank by Bursa Derivatives Malaysia marks Bank of China’s footstep of collaboration with the exchange houses in the world has reached the sphere of emerging markets, which is a further breakthrough in our global clearing and settlement network.