KUALA LUMPUR: Bursa Malaysia Derivatives Bhd’s wholly owned subsidiary, Bursa Malaysia Derivatives Clearing Bhd, an approved clearing house for the Malaysian derivatives market under the Capital Market Services Act (CMSA) on Nov 16 announced it has received recognition as a Third-Country Central Counterparty (TC-CCP) by the European Securities and Markets Authority (ESMA).
This TC-CCP recognition was granted to Bursa Malaysia Derivatives Clearing on Nov 7 under the European Market Infrastructure Regulation (EMIR).
With this, the exchange will now have greater access to the European investment communities while European counterparties will find it easier and more cost-effective to do business with Bursa Malaysia.
“This recognition confirms Bursa Malaysia is aligned with international standards, which will
create new opportunities with European clearing institutions,” said Bursa Malaysia Derivatives acting director Mohd Saleem Kader Bakas.
Under EMIR requirements, only recognised TC-CCPs are able to provide clearing services to
members or trading venues established in the European Union (EU). Further, being recognised
means that market participants from Europe are subjected to lower capital
requirements/charges under the Basel III framework introduced by the Basel Committee on
Banking Supervision, which enables European members to manage their counterparty risk
efficiently.
“We are the third exchange in Asean to be accorded this recognition, which is a significant
milestone for Bursa Malaysia,” concluded Mohd Saleem.
“We are very grateful EMIR was adopted by the European Parliament and council of the EU in July 2012 for the continued support received from the Securities Commission of Malaysia throughout the TC-CCP application process.” he said.