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Effective 16 June 2016, Bursa Malaysia will extend the ‘Green Lane Policy’ to the eligible futures brokers and eligible general clearing participants to commence their activities with only a notification process to Bursa Malaysia Derivatives Berhad and Bursa Malaysia Derivatives Clearing Berhad respectively.
The introduction was made based on the successful implementation of the policy on equity brokers in 2013 and in line with the Exchange’s continuous effort to streamline effective regulatory processes between all market participants.
The policy will shorten the time to market for futures brokers and general clearing participants to commence their new activities which includes the opening of new branches or trading kiosks, relocation of business premises or change of business address, establishment of new/additional trading floors, commencement of proprietary trading, commencement of discretionary account trading facilities, commencement/relocation of trading in a dual licensed branch of a related stock broking company, etc.
Futures brokers and general clearing participants which fulfil the policy’s requirement will be eligible to adopt the policy.
Presently, all applications by the futures brokers and general clearing participants to Bursa Malaysia for the commencement of a new activity are processed either through the Self-Assessment Approach (SAA) or the Declaratory Approach (DA) where prior approvals from Bursa Malaysia are required.
The relevant changes to the relevant directives and guidelines under the Rules of Bursa Malaysia Derivatives Berhad and Rules of Bursa Malaysia Derivatives Clearing Berhad have been made available for reference at the Exchange’s website, www.bursamalaysia.com
