Malaysia's Securities Commission introduces changes to the regulation of clearing
On June 23, the Securities Commission Malaysia announced amendments to its regulatory framework so that the clearing of securities and derivatives will be classified as a new regulated activity. Trading and clearing functions will be decoupled and become two distinct regulated activities under the new framework. Changes will be introduced under a phased approach with changes for derivatives being introduced first. Grandfathering provisions will apply for existing license holders. Bursa Malaysia Derivatives is expected to amend its membership structure so that firms can apply for a standalone clearing membership.
