Page 38 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

compliance requirements for IDSS

To ensure that IDSS activities are subject to adequate controls, Rules of Bursa Malaysia Securities Bhd have been amended
to incorporate the necessary safeguards. These include the following compliance requirements:

Maintain market Safeguard investors’ Ensure adequate
stability interests broker control

• IDSS suspension if a stock price • Enter into an agreement to borrow • Robust Know Your Client and
falls by more than 15% from the or purchase securities to settle any suitability assessment.
previous day’s closing price or if potential failed trades in the event
the gross short-selling volume the sell position is not closed out by • Tagging of all proposed IDSS
exceeds the limit of 3% of end of day. orders.
outstanding shares per security.
• Execute IDSS risk disclosure
• All sell positions must be closed statement.
off on the same day with buy
positions to minimise potential • Provide written declaration
system disruption. that they fully understand IDSS
requirements.

• BRIDGe-ing the gap brokers as well as share registrars was
established in August 2018. Together, BRIDGe
Digitising the brokerage industry is key serves to accelerate the digitisation of the
towards enhancing broker’s growth, country’s stockbroking business.
expanding reach to new and younger
investors as well as improving customer • Brokerage Industry Consultative
experience. Engagements with industry Committee as an open channel of
players reveal that digitisation opportunities communication
exist across the value chain, starting with
customer onboarding to settlement of trades Brokerage Industry Consultative Committee
and execution of corporate actions. These (BrICC) was established to ensure that issues
opportunities will however need the support specific to the capital market sub-sector are
of a wider financial services ecosystem. addressed. It convened its first meeting in
October 2018, engaging the stockbroking
The Brokerage Industry Digitisation Group industry on issues relating to market
(BRIDGe), comprising representatives from the development, operational efficiency and
SC, BNM, Bursa Malaysia and industry panels regulation.
including banks, payment service providers,

28 | PART 1 »» ENABLING SHARED VALUE GROWTH

NEW_2-35.indd 28 2/21/19 9:26 AM