Selvarany Rasiah, Chief Regulatory Officer of Bursa Malaysia said, "The intent of this review is to ensure that the Exchange's Rule framework remains effective and balanced in safeguarding the interest of investors, preventing systemic risk and ensuring an orderly and fair market whilst being facilitative of business and market development. Against a fast changing trading and investment landscape, the proposed amendments are important to ensure that market quality and integrity remain intact. The revamp aims to achieve this by enhancing the standards of governance and business conduct by the market intermediaries and strengthening the framework for management of risks and conflicts."
The significant changes in the proposal are as follows:-
- strengthening of the POs’ governance framework,
- enhancing framework for self-regulation by the POs and key personnel of POs registered with the Exchange (registered persons);
- clarifying the powers of the Exchange to regulate the market, the POs and registered persons;
- enhancing investor protection framework through enhancements in the framework for risk management, conflicts management and the standard of conduct of POs and dealers’ representatives;
- promoting innovation by providing POs with greater flexibility to manage and operate their business based on their business model, activities and risk profile whilst not compromising on regulatory objectives;
- simplifying, streamlining and enhancing efficiency in processes, application and reporting requirements; and
- streamlining clearing and settlement rules and clarifying rules on novation of on-market transactions.
Consequential and other amendments to clarify the Rules of Bursa Malaysia Securities Clearing Sdn. Bhd. are also being proposed and feedback is sought on these amendments as well.
The consultation paper can be downloaded from the Exchange’s website at www.bursamalaysia.com. Market participants are encouraged to respond to the consultation paper by completing and submitting the Table of Comments attached with the consultation paper.
The deadline for feedback and replies to the consultation paper is 18 February 2011.
