Bursa Malaysia has granted UBS Securities Malaysia authorised borrower status under its reintroduced regulated short-selling and securities borrowing and lending activities scheme.
“We are delighted at being allowed to participate in the Securities Borrowing and Lending (SBL) framework,” says Joe Cavatoni, head of equity swaps, Asia, UBS. “The re-introduction of these measures will contribute strongly to greater liquidity and enhance the attractiveness of the Malaysian market,” he adds.
The SBL facility will be offered by Bursa Malaysia Clearing (BMC) which will act as the central lending agency (CLA), borrowing securities from lenders and lending to borrowers. Any person with the requisite number of stocks may lend to the CLA, but only approved institutions will be entitled to borrow from it.
Bursa Malaysia says it plans a staged introduction of SBL and a move towards securities borrowing and lending on an over the counter basis. Participants will negotiate the terms under which they operate within Bursa Malaysia’s framework.
UBS Malaysia was awarded a foreign broker licence by the Securities Commission in September 2005 and became one of the initial brokers trading on Bursa Malaysia.