FMC, BNM announce operationalisation of segregated securities

KUALA LUMPUR: The Financial Markets Committee (FMC) and Bank Negara Malaysia (BNM) have announced the operationalisation of segregated securities accounts via the Real-time Electronic Transfer of Funds and Securities System (RENTAS) for payments to further develop the Malaysian bond market.

In a statement yesterday, BNM said the RENTAS segregated securities account is to be operationalised in two phases, with the first commencing on May 21, while full compliance under the second by Sept 30 is to allow for an efficient transitioning into the segregated account rules.

“After Sept 30, all transactions involving RENTAS debt securities will only be facilitated through the segregated securities account. Given the

After Sept 30, all transactions involving RENTAS debt securities will only be facilitated through the segregated securities account. BNM

depth and breadth of the onshore bond market, there is sufficient liquidity to continue facilitating the settlement of ringgit bonds onshore,” BNM said.

Operated by Payments Network Malaysia Sdn Bhd, RENTAS was part of the strategy to enhance transparency, visibility and strengthen surveillance.

“Investors will be provided with greater access to information on the Malaysian bond market, hence, facilitating more informed decision making and better risk management. Information such as investor type and flows in the government bond market for both non-resident and resident investors will be made available in the ‘Bond Info Hub’ website on a more regular and timely basis,” the Bank added.

Investors may consult with all local and global custodian banks, including International Central Securities Depositories which will be onboard the RENTAS segregated securities accounts.

For enquiries, members of the public can contact the Securities Operations Unit, BNM at 03-2698 2116 / 2094 (Monday to Friday from 9 am to 5 pm, excluding public holidays) or email sou@ bnm.gov.my.