Malaysia mulls repo reform
22 August 2019 Kuala Lumpur
Image: Shutterstock
The Central Bank of Malaysia has proposed revisions to the country’s rules framework for repos and reverse repos.
Bank Negara Malaysia published an exposure draft on 20 August and is inviting feedback on the new requirements and expectations for market participants engaged in repos involving ringgit or non-ringgit repo and reverse repos.
The bank said the changes would also affect any outright sale or purchase of repo securities.
The proposed policy revisions include an extension of the maximum tenor of a repo to five years, up from the current limit of 365 days.
The bank is also considering expanding the list of eligible securities to accord flexibility to market participants and the repo market. Bank Negara Malaysia did not clarify which securities it would consider adding.
Finally, the proposed new framework would see the removal of subjection to Malaysian Annex.
The deadline for offering feedback on the proposals is 13 September.
Bank Negara Malaysia published an exposure draft on 20 August and is inviting feedback on the new requirements and expectations for market participants engaged in repos involving ringgit or non-ringgit repo and reverse repos.
The bank said the changes would also affect any outright sale or purchase of repo securities.
The proposed policy revisions include an extension of the maximum tenor of a repo to five years, up from the current limit of 365 days.
The bank is also considering expanding the list of eligible securities to accord flexibility to market participants and the repo market. Bank Negara Malaysia did not clarify which securities it would consider adding.
Finally, the proposed new framework would see the removal of subjection to Malaysian Annex.
The deadline for offering feedback on the proposals is 13 September.
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