Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) recently welcomed CGS-CIMB Securities Sdn Bhd (“CGS-CIMB”) and Kenanga Investment Bank Berhad (“KIBB”) as Approved Supplier and User Representatives under the Islamic Securities Selling and Buying – Negotiated Transaction (“ISSBNT”) Framework.
As Supplier and User Representatives, CGS-CIMB and KIBB will act as an agent to facilitate the buying and selling of Shariah-compliant securities, as well as enable hedging and risk management activities for market participants while adhering to Shariah principles.
ISSBNT is the world’s first Shariah-compliant alternative to Securities Borrowing and Lending (“SBL”), which was launched by the Exchange in December 2017. The platform was developed as a mechanism to provide a facilitative trading environment and improve trading liquidity and velocity of securities assets, all while complementing the ever-growing value of Shariah-compliant securities in Malaysia.
“Bursa Malaysia is pleased to onboard CGS-CIMB and KIBB as Approved Supplier and User Representatives under the ISSBNT Framework,” said Datuk Muhamad Umar Swift, CEO of Bursa Malaysia. “The facilitation of buying and selling of Shariah-compliant securities by KIBB and CGS-CIMB marks another significant contribution that is paramount to fostering a more conducive Islamic capital market ecosystem.”
“We commend their participation and look forward to continuing support from other market players and investors to strengthen Malaysia’s position as the world’s leading Islamic Shariah-compliant equities market,” he added.
Puan Ruzi Rani Ajith, Chief Executive Officer of CGS-CIMB Securities Sdn Bhd said, “As one of ISSBNT’s pioneering Supplier and User Representatives, CGS-CIMB has already onboarded clients with operational systems in place. CGS-CIMB’s facilitation of the buying and selling of Shariah-compliant securities will create a more enabling trading environment, increase market liquidity and make the Shariah-compliant equity market more attractive to market participants. We will continue to offer innovative Shariah-compliant products towards growing Malaysia’s Islamic capital market ecosystem.”
Datuk Chay Wai Leong, Group Managing Director of Kenanga Investment Bank Berhad says, “This move signifies Kenanga’s unique position in facilitating the buying and selling of listed Shariah-compliant securities within the ISSBNT model, in addition to our existing Shariah-compliant product offerings. We look forward to continuing being a part of the journey to develop Malaysia’s Shariah compliant securities market for the years to come.”
To date, there are 179 Shariah-compliant securities eligible for ISSBNT transactions, as reviewed and approved by the Securities Commission Malaysia's Shariah Advisory Council.
To learn more about ISSBNT, please visit https://www.bursamalaysia.com/trade/post_trade/issbnt/operational_framework.
