Bursa Malaysia Derivatives Clearing Recognised As A Third Country Central Counterparty By The European Securities And Markets Authority

Bursa Malaysia Derivatives Berhad’s (“Bursa Malaysia Derivatives” or “the Exchange”) wholly owned subsidiary, Bursa Malaysia Derivatives Clearing Berhad (“Bursa Malaysia Derivatives Clearing”), an approved Clearing House for the Malaysian derivatives market under the Capital Market Services Act (“CMSA”) today announced it received recognition as a Third-Country Central Counterparty (“TC-CCP”) by the European Securities and Markets Authority (“ESMA”).

This TC-CCP recognition was granted to Bursa Malaysia Derivatives Clearing on 7 November 2022, under the European Market Infrastructure Regulation (“EMIR”) ¹. With this, the Exchange will now have greater access to the European investment communities while European counterparties will find it easier and more cost-effective to do business with Bursa Malaysia.

“This recognition confirms Bursa Malaysia is aligned with international standards, which will create new opportunities with European Clearing Institutions,” said Mohd Saleem Kader Bakas, Acting Director, Bursa Malaysia Derivatives.

Under EMIR requirements, only recognised TC-CCPs are able to provide clearing services to members or trading venues established in the European Union. Further, being recognised means that market participants from Europe are subjected to lower capital requirements/charges under the Basel III framework introduced by the Basel Committee on Banking Supervision, which enables European members to manage their counterparty risk efficiently.

“We are the third Exchange in ASEAN to be accorded this recognition, which is a significant milestone for Bursa Malaysia,” concluded Mohd Saleem Kader Bakas. “We are very grateful for the continued support received from the Securities Commission Malaysia throughout the TC-CCP application process.”