Malaysian derivatives exchange debuts post-trade system
Malaysia's derivatives exchange has launched a new
derivatives clearing and settlement system designed to provide greater speed
Bursa Malaysia Derivatives Berhad's (BMD) new clearing and settlement system went live on 27
February and is intended to pave the way for the introduction of derivative
futures and options products at the southeast Asian exchange.
The benefits of the new system include a higher capacity for
the clearing and settlement of high volume trades. Increased automation comes from the system's web-based technology and online real-time electronic request and approval
processes, and electronic delivery of documents for physically delivered
The new system supports BMD’s earlier adoption of the CME
Globex trading platform for futures and options.
“Exchanges around the world are facing intense competition,”
said Dato’ Tajuddin Atan, CEO of Bursa Malaysia and chairman of BMD. “To
compete, we must pursue ways to reduce friction in the marketplace and create a
more efficient trading, clearing and settlement environment.”
Malaysia’s derivatives trading revenue jumped 36% to RM51.2 million (US$17
million) last year as securities average daily trading value increased 14% to
RM1.79 billion (US$0.6 billion), securing a sharp increase in profits for the exchange.
December, Bursa Malaysia introduced new abilities on its derivatives market
which allow its members to trade block-sized orders. The bourse’s new negotiated
large trade facility is intended to let large trades execute at a
single price, thereby minimising market impact cost and increasing certainty of