Saturday 27 Apr 2024
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KUALA LUMPUR (May 21): Malaysia's Financial Markets Committee (FMC) said operationalisation of segregated securities accounts under the Real-time Electronic Transfer of Funds and Securities System (RENTAS) started today to further develop the nation's bond market.

In a statement today, the FMC said the RENTAS segregated securities accounts will be operationalised in two phases. The FMC said phase I commences today (May 21, 2018) while full compliance is expected to be achieved under phase 2 by September 30, 2018 to allow for efficient transitioning into the segregated account rules.

"Post 30th September 2018, all transactions involving RENTAS debt securities will only be facilitated through the segregated securities account. Given the depth and breadth of the onshore bond market, there is sufficient liquidity to continue facilitating the settlement of ringgit bonds onshore. 

"With the appropriate system infrastructure in place, investors will be provided with greater access to information on the Malaysian bond market, hence facilitating a more informed decision making and better risk management," the FMC said.
 
The FMC, established by Bank Negara Malaysia (BNM) in May 2016, includes representatives from BNM, financial institutions and corporations.

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