Bursa Malaysia seeks feedback on changes to ETF framework
KUALA LUMPUR: Bursa Malaysia Bhd is inviting public feedback on several proposed enhancements to the exchange-traded fund (ETF) framework, including reducing the interim reporting frequency and improving the contents of ETF interim and annual reports.
The exchange said in a statement that it had issued a consultation paper to seek feedback on the proposed review of the Main Market Listing Requirements as well as Bursa Malaysia Securities’ rules and directives in relation to ETFs.
The public consultation period runs from yesterday until July 23.
Bursa Malaysia said the proposed amendments resulted from key recommendations made last year by a task force on ETFs, comprising the Securities Commission (SC), Bursa Malaysia and other market participants.
The recommendations were aimed at attracting greater investor participation in ETFs and encouraging issuances by ETF managers in the Malaysian market.
“The recommendations included promoting issuance of innovative and new ETFs, such as futures-based ETFs, including the leveraged and inverse ETFs (L and I ETFs), physically-backed commodity ETFs and synthetic ETFs,” the exchange said.
On the proposed ETF amendments, Bursa Malaysia said the proposals included liberalising the interim reporting frequency from quarterly to semi-annual basis, and enhancing the contents of ETF interim and annual reports arising from various new ETF products and their specific requirements.
The third key proposal is enhancing the immediate announcement requirements to promote greater transparency in relation to the index or benchmark tracked by the ETF.
Bursa Malaysia said as a result, Bursa Malaysia Securities’ rules and directives would also be amended to introduce the qualifying criteria for investors of L and I ETFs and to expand the permitted short selling (PSS) framework to allow market makers to short sell all types of ETF units. At present, the PSS framework allows for market makers to short sell equity-based ETFs only. — Bernama