KUALA LUMPUR: Bank Negara Malaysia has issued an exposure draft which lays out its requirements and expectations on companies providing electronic trading platforms.
It said the draft was for these market participants within the Malaysian wholesale financial markets, specifically money and foreign exchange markets.
Money market instruments refer to products such as negotiable instruments of deposit, bills, bankers acceptance and repurchase agreements. Foreign exchange products include spot, forward, swaps and derivatives thereof of all currency pairs.
“Electronic trading platforms covered under this exposure draft include multi-bank channels, and excludes single-bank platforms.
“They are specifically approved money brokers which operate electronic broking platforms; and other market participants which operate electronic trading platforms, whether or not any form of remuneration, fee, commission or subscription is chargeable,” it said.
Bank Negara said eligible platform operators had to obtain its approval prior to offering their services in Malaysia.
Responses must be submitted to Bank Negara by July 15.
Click here: Framework for Electronic Trading Platforms