Malaysia: Need to harmonise standards in post-trade processing

• Mar 13, 2017

KUALA LUMPUR: Malaysia needs to attain harmonisation between domestic and international standards in post-trade processing in enabling the country to drive further growth in the capital market.

Depository Trust and Clearing Corp (DTCC) executive director and head of business development Asia Pacific, Hasan Rauf said post-trade processing is an infrastructure that supports automated trade matching and real-time communication of trade details between counter parties.

The market challenge, according to Rauf, is to create a cost-effective infrastructure which supported both domestic and international requirements.

“Malaysia’s capital market is diversified, comprising both domestic and international portfolios. It is primed for substantial growth and internationalisation.

“The challenge is for firms to meet regulatory requirements across multiple jurisdictions,” he said.

He said the DTCC, the premier provider of post-trade market infrastructure for the global financial services industry, could provide what is needed to deal with international trading, including mitigating operational risks that may result in failed or delayed trades.

Rauf said DTCC’s Malaysian clients comprise government-linked institutions and those from the banking industry.

He said the challenge for Malaysia is the contrast between local and international practices, since not all firms have fully adopted automated processes which supported internationalisation. – Bernama

Source: http://www.thestar.com.my/business/business-news/2017/03/13/need-to-harmonise-standards-in-posttrade-processing/