Market Link Guide - Malaysia

13.03.2019

Key features

CSD link as defined under CSDRa

Yes - link to Bursa Malaysia Depository Sdn Berhad (Bursa Depository)

No - link to Bank Negara Malaysia

Type of link

Indirect link via HSBC Bank Malaysia Berhad to Bursa Depository

Out of network link to Bank Negara Malaysia with HSBC Bank Malaysia Berhard as agent

a. CSD Regulation (EU) No 909/2014 art. 2 (29)


CSD

Custodian / Agent

Name

Bursa Malaysia Depository Sdn Berhad (Bursa Depository)

Bank Negara Malaysia - Scripless Securities Depository System (SSDS).

HSBC Bank Malaysia Berhad

FATCA GIIN

Not available

4RI52Y.00000.BR.392

LEI

Bursa Depository: 254900UDVVJ8TRS6T396

Bank Negara Malaysia: 549300NROGNBV2T1GS07

P3RPN9OJFCXUPJWB1Q09

Country of incorporation

Malaysia

Malaysia

Account type

Bursa Depository – omnibus account

Bank Negara Malaysia – segregated account per ultimate beneficial owner

Omnibus account

Segregated account per ultimate beneficial owner

Legal Account name / holder

Bursa Depository: HSBC Bank Malaysia Berhad, as participant in Bursa Depository,  holds securities  under the name HSBC Nominees (Asign) Sdn Bhd with a dedicated account qualifier ‘Exempt AN for Clearstream Banking SA’

Bank Negara Malaysia: HSBC Bank Malaysia Berhad, as participant in SSDS holds segregated accounts per ultimate beneficial owner.

Clearstream Banking SA






Ultimate beneficial owner in whose name the segregated account is opened

Operational arrangements

 Yes/NoRemarks
Settlement free of paymentYes 
Settlement against paymentYesEligible settlement currency: Malaysian Ringgit (MYR).
Settlement against payment in central bank money account of CBL/CBL customersNo

Equities: Against payment settlement takes place on the cash account of Bursa Clearing at a local bank. Note: Bursa Clearing has cash accounts open at a few local banks.

Fixed income: Against payment settlement in MYR takes place on the cash account of HSBC Bank Malaysia Berhad at the local central bank.
Bridge settlementNoBridge settlement of securities deposited in Malaysia is not possible with Euroclear counterparties.
Shaping facilityNo 
Partial settlementYesOnly applicable for trades settling via ISS.
Settlement penalty feesYesRefer to the Market Profile.
Pre-matchingYes 
Back-to-back processingNo 
AllegementsNo 
Automatic compensationNoRefer to Entitlement Compensation Rules.
Registered securitiesNo 
Multi Market SecuritiesNo 
Lending and borrowingYesEligible debt securities (Bursa Depository and SSDS) qualify for CBL's securities borrowing and lending programme.
Proxy votingYes 
Investment FundsYesExchange Traded Funds
Liquidity Hub ConnectNo 
Sale and purchase of rightsNo 
Repo servicesYesCBL Internal.
Market restrictionsYesRefer to Investment Regulation.
FTTNo 
Daily reconciliationYes 

Moment of entry of instructions

The rules of Bursa Depository do not define the moment of entry within the meaning of the Settlement Finality Directive.

Irrevocability of instructions

Bursa Depository: Participants may cancel securities transaction submitted for settlement, provided it has not been settled and subject to mutual agreement between both buyer and seller. For securities transaction before its settlement date, the seller can initiate the cancellation advice before the settlement date and the buyer shall confirm the cancellation advice immediately on the same day. For transaction pending payment on the settlement date, the buyer can initiate cancellation of the cash leg transaction from the payment queue. This will then prevent DVP from occurring and the transaction will automatically be cancelled by the system at settlement cut-off.

Finality of instructions

All settlements in Bursa Depository are deemed final and irrevocable.

Legal Arrangements

The below section is based on the legal opinions obtained by CBL that were issued on 17 May 2018 (Hong Kong) and 4 September 2018 (Malaysia).  The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.

No insolvency proceedings against the custodian

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

Recognition of nominee concept

Laws of Malaysia recognise the nominee concept but do not distinguish between legal and beneficial ownership of securities and it assumes that a person whose name is recorded in the register book is the owner of the relevant securities.

No right of retention for the custodian

Confirmed

Segregation of assets at the custodian

Confirmed

No right of use

Confirmed

No upper-tier attachments

Confirmed

Insolvency of the custodian with no impact on CBL's rights 

Confirmed, although in Malaysia, the concept of bankruptcy applies only to an individual

Shortfall pro-rated among holders

There is no provision under the Malaysian law which provides that the shortfall shall be borne by all the account-holders.

Record keeping of at least 10 years

The custodian has committed to record keeping period of at least 7 years in accordance with the statutory law requirement in Hong Kong.

Settlement finality in case of insolvency

Confirmed