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 S.A. |
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. |
Local legislation
The below section is valid on the date of the legal opinions that were issued and might be subject to change. 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. The scope of the legal opinions is limited to the local legislation applicable to the relevant CSD (and intermediary, if any). For links using an intermediary located in another jurisdiction, please find a separate Local legislation section for the jurisdiction of the intermediary below. For clients accessing local markets via other Clearstream entities, please also review the Local legislation section in the relevant Market Link Guide for such Clearstream entity.
Local legislation of the CSD/Intermediary | |
Date of legal opinion | 30 November 2024 |
Nature of rights on securities | Substantive law of the jurisdiction will govern the nature of the rights on the securities. Rights on the securities are securities entitlements or contractual rights. No differences in conclusions in case of sub-accounts for Clients within the Direct CSD Account. |
Recognition of nominee concept | Nominee concept recognised under local law. |
No right of retention to the CSD under local law | CSD does not have a lien or similar encumbrances on the securities under local law. |
No upper-tier attachments | Securities would not be subject to attachment. |
No right of use without prior consent | Laws of the jurisdiction restrict CSD from using securities without Clearstream’s prior consent. |
Segregation of assets at the CSD | CSD is under legal/regulatory obligation to segregate the securities held for each participant. |
Loss of assets | No general restrictions on ability to recover lost assets or on indemnification under local law, subject to certain exceptions noted by counsel (such as force majeure, no negligence by the CSD, liability caps, sovereign immunity, etc.). |
Ability to recover client assets in the event of insolvency of CSD | Securities would be recoverable. |
Ability to recover client assets in the event of insolvency of Agent | Securities would be recoverable in the event of insolvency of the Subcustodian. Claim to cash as a general creditor in case of insolvency of the Subcustodian. |
Shortfall pro-rated among holders | Shortfall in the securities may be allocated pro rata, but counsel noted certain nuances. |
Settlement finality in case of insolvency | Transfer orders may be revoked in certain circumstances. |