Market Link Guide - Malaysia

14.09.2021

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 payment

Yes

Settlement against payment

Yes

Eligible settlement currency: Malaysian Ringgit (MYR).

Settlement against payment in central bank money account of CBL/CBL customers

No

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 settlement

No

Bridge settlement of securities deposited in Malaysia is not possible with Euroclear counterparties.

Shaping facility

No

 
Partial settlement

Yes

Only applicable for trades settling via ISS.

Settlement penalty fees

Yes

Refer to the Market Profile.
Pre-matching

Yes

 
Back-to-back processing

No

 
Allegements

No

 
Automatic compensation

No

Refer to Entitlement Compensation Rules.
Registered securities

No

 
Multi Market Securities

No

 
Lending and borrowing

Yes

Eligible debt securities (Bursa Depository and SSDS) qualify for CBL's securities borrowing and lending programme.

Proxy voting

Yes

 
Investment Funds

Yes

Exchange Traded Funds

Liquidity Hub Connect

No

 
Sale and purchase of rights

No

 
Repo services

Yes

CBL Internal.

Market restrictions

Yes

Refer to Investment Regulation.
FTT

No

 
Daily reconciliation

Yes

 

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 9 March 2021 (Hong Kong) and 10 September 2021 (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