Market Link Guide – Malaysia
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 | Omnibus account |
Bank Negara Malaysia – segregated account per ultimate beneficial owner | 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 (Asing) Sdn Bhd with a dedicated account qualifier ‘Exempt AN for Clearstream Banking SA’ | Clearstream Banking SA |
Bank Negara Malaysia: HSBC Bank Malaysia Berhad, as participant in SSDS holds segregated accounts per ultimate beneficial owner. | Ultimate beneficial owner in whose name the segregated account is opened |
Operational arrangements
| Yes/No | Remarks | |
| 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 clients | 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 4 October 2023 (Hong Kong) and 19 December 2023 (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 |