Maybank IB to facilitate syariah-compliant securities trading

KUALA LUMPUR: Bursa Malaysia Bhd has onboarded Maybank Investment Bank Bhd as approved supplier and user under the Islamic Securities Selling and Buying – Negotiated Transaction (ISSBNT) Framework.

ISSBNT is the world’s first syariah-compliant alternative to Securities Borrowing and Lending, which was launched by the exchange in December 2017. The platform was developed as a mechanism to provide a facilitative trading environment and improve trading liquidity & velocity of syariah-compliant securities.

As approved supplier and user, Maybank IB will facilitate the buying and selling of syariah-compliant securities, as well as enable hedging and risk management activities for market participants while adhering to syariah principles.

Bursa Malaysia CEO Datuk Muhamad Umar Swift said the addition of more participating organisations under the ISSBNT Framework demonstrates its commitment to growing the Islamic equity market in response to increased demand for syariah-compliant assets.

“We look forward to the increased participation and continued support from our brokers to spur the growth and vibrancy of our marketplace, upholding Malaysia’s position as the world’s leading Islamic syariah-compliant equities market,” he said in a statement today.

Meanwhile, Maybank IB CEO Datuk Fad’l Mohamed said the status will enable it to support its clients’ investment management strategies as it sees strong demand for syariah-compliant assets among investors.

“With syariah-compliant securities making up 79% of Bursa Malaysia listed securities, there is potential to further develop our Islamic capital markets and Maybank IB will continue to play an active role in making Malaysia a leader in this space,” he said.

Maybank IB’s inclusion follows the recent announcement of CGS-CIMB Securities Sdn Bhd and Kenanga Investment Bank Bhd, which have also obtained the same status. To date, there are 179 syariah-compliant securities eligible for ISSBNT transactions, as reviewed and approved by the Securities Commission Malaysia’s Shariah Advisory Council.