Malaysia: Internal settlement for RENTAS debt securities
Clearstream Banking1 advises customers that, effective
18 November 2019
internal settlement for RENTAS debt securities will be available under specific conditions, to comply with the Malaysian central bank, Bank Negara Malaysia’s (BNM) requirements.
Impact on customers
- To conduct internal settlement of RENTAS debt securities, the buyer and seller must both be customers of Clearstream Banking, obtain a Legal Entity Identifier (LEI) and have the required accounts opened at Clearstream Banking’s depository and at RENTAS. The details of the LEI and account opening requirements can be found in the Market Link Guide - Malaysia.
Note: Account opening requests for Ultimate Beneficial Owners that are individuals will not be accepted. - The customer’s segregated securities account number opened at the depository as well as the counterparty’s RENTAS segregated securities account number must always be mentioned in the customer’s internal settlement instructions so that this data can be transmitted to Clearstream Banking’s depository for the purpose of realigning the internally settled securities positions in the domestic market. Full details of how to instruct internal settlements will be updated accordingly in the Market Link Guide - Malaysia.
- Customers must communicate their RENTAS segregated securities account details to their counterparties prior to trading.
The RENTAS segregated securities account is a matching criterion for the realignment to take place successfully in the domestic market. - With regard to internal against payment settlement or internal free of payment settlement with a separate payment in cash (required when there is a change of beneficial owner), customers are requested to take note of the following restrictions.
Note: Clearstream Banking’s MYR account is designated as a “foreign” cash account. Cash belonging to Malaysian residents must be transferred out within three (3) days from credit date. Customers are responsible for ensuring compliance with these restrictions and agree to indemnify and hold harmless Clearstream Banking for any loss, expense, liability, damage or claims, whether direct or indirect, against or incurred by Clearstream Banking arising out of or resulting from such non-compliance.Non-resident customer and non-resident counterparties
Non-resident customer and resident counterparties
Resident customer and resident counterparties
Foreign currency and MYR allowed.
Foreign currency only. MYR not allowed.
Foreign currency only. MYR not allowed.
Further information
The Market Link Guide – Malaysia will be updated accordingly.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.