Yusli Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia Berhad said, “There seems to be some confusion arising from our announcement of the discretionary financing (DF) facility.
The market needs to be clear that the exchange’s settlement period has not changed. DF permits a client to make payment to the PO by T+7. This arrangement for payment by client is entirely at the broker’s discretion and does not change the settlement period to the exchange.”
With the introduction of DF, the PO’s timeframe for settlement of its client’s purchase position vis the Clearing House still remains the same at T+3. However, POs may now allow clients to pay for their position to the PO by T+7, thereby financing their client’s purchase position for the period between T+4 and T+7.
