Bank Negara announces the operationalisation of RENTAS

May 21, 2018 | By | Reply More

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KUALA LUMPUR: Bank Negara Malaysia and Financial Markets Committee (FMC) announced the operationalisation of segregated securities accounts at the large value payment system, real-time electronic transfer of funds and securities system (RENTAS).

In a statement, Bank Negara said this is part of the measures to further develop the Malaysian bond market that have been announced in the second series of initiatives by the FMC and the bank on April 13, 2017.

Operated by Payments Network Malaysia Sdn Bhd (PayNet), the RENTAS segregated securities account will be operationalised in two phases to allow for efficient transitioning into the segregated account rules.

After September 30, 2018, all transactions involving RENTAS debt securities will only be facilitated through the segregated securities account. Given the depth and breadth of the onshore bond market, there is sufficient liquidity to continue facilitating the settlement of ringgit bonds onshore.

“To facilitate investors’ transition into the segregated accounts, investors may consult with all local and global custodian banks, including International Central Securities Depository (ICSD) which will be onboard the RENTAS segregated securities accounts,” said Bank Negara.

“With the appropriate system infrastructure in place, investors will be provided with greater access to information on the Malaysian bond market, hence facilitating a more informed decision making and better risk management.

“Information such as investor type and flows in the government bond market for both non-resident and resident investors will be made available in the Bond Info Hub website on a more regular and timely basis.

“With a system-based implementation, there will be better efficiency and less reporting burden for investors, which will lower the cost of investing in the Malaysian bond market,” it said.

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