Bursa Malaysia Derivatives Clearing has been recognised by the European Securities and Markets Authority (ESMA) as a Third-Country CCP (TC-CCP), according to a statement from its parent company, Bursa Malaysia Derivatives Berhad.
Under the European Market Infrastructure Regulation (EMIR), only approved TC-CCPs are permitted to provide clearing services to clearing members or trading venues established in the European Union.
With this TC-CCP recognition, market participants clearing derivatives trades through Bursa Malaysia Derivatives will be subject to lower capital charges under the Basel III framework.
Bursa Malaysia Derivatives Berhad explains that with TC-CCP recognition granted to its derivatives clearing arm, the exchange will now have improved access to Europe’s investment communities, while European counterparties will find it more straightforward and cost-efficient to trade and clear through the Kuala Lumpur-based exchange group.
Bursa Malaysia Derivatives acting director Mohammed Saleem Kader Bakas says that this recognition confirms that Bursa Malaysia is aligned with international standards and that this will generate new opportunities to do business with European clearing institutions.
“We are the third Exchange in the ASEAN region to be accorded this recognition, which is a significant milestone for Bursa Malaysia,” he adds. “We are very grateful for the continued support received from the Securities Commission Malaysia throughout the TC-CCP application process.”
