Bursa Malaysia Launches New Derivatives Clearing and Settlement System
Bursa Malaysia Derivatives Berhad (BMD) has launched a new derivatives clearing and settlement system to provide faster and more efficient clearing and settlement services for its Clearing Participants.
The new clearing and settlement system, which went live on Monday, 27 February 2012, will pave the way for the introduction of new derivative futures and options products.
Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia and Chairman of BMD said, “Exchanges around the world are facing intense competition. In order for us to compete, we must actively pursue ways to reduce friction in the marketplace and create a more efficient trading, clearing and settlement environment. In this regard, the introduction of a new derivatives clearing and settlement system is in line with our strategy to improve the derivatives market eco-system with global electronic trading distribution and with more straight-through processing functionality and capability.”
The benefits of the new clearing and settlement system include a higher capacity for the clearing and settlement of high volume trades; higher automation due to its web-based technology; and advanced functionalities such as online real-time electronic request and approval processes and electronic delivery of documents for physically delivered products, including multi-market and multi-currency settlement features. For Clearing Participants, this means greater improvement in efficiency through increased real-time availability of clearing information and a significant reduction of paperwork.
The new dynamic clearing and settlement system complements and supports BMD’s earlier adoption of the CME Globex® trading platform, one of the world’s fastest global electronic trading systems for futures and options.