Bursa Malaysia Securities Clearing has launched the Central Matching Facility (CMF), an automated settlement system. Bursa Malaysia says CMF provides a faster, more effective matching of settlements for institutional trades, which is in line with the exchange’s commitment to achieve greater operational efficiency.
“CMF will provide an efficient clearing and settlement service that is in line with international best practices and standards,” says Dato’ Yusli Mohd Yusoff, CEO of Bursa Malaysia.
CMF allows clearing participants, which comprise brokers and custodian banks, to automatically and electronically match trade and settlement details. With CMF, files of the matched record for Depository Transfer and Institutional Settlement Service (ISS) transactions can be produced. CMF also automates the creation of the instruction and confirmation of ISS transactions.
Bursa Malaysia claims CMF reduces clearing participants’ workload, minimises settlement errors, eliminates human intervention and provides immediate confirmation of trade details.