MALAYSIA: Bursa Malaysia Derivatives Clearing Recognised as a TC-CCP by ESMA

Thursday November 17 2022

On 16^th November 2022, Bursa Malaysia Derivatives Berhad’s (Bursa Malaysia Derivatives) wholly owned subsidiary, Bursa Malaysia Derivatives Clearing Berhad (Bursa Malaysia Derivatives Clearing), an approved Clearing House for the Malaysian derivatives market under the Capital Market Services Act (CMSA) announced that it received recognition as a Third-Country Central Counterparty (TC-CCP) by the European Securities and Markets Authority (ESMA)

This TC-CCP recognition was granted to Bursa Malaysia Derivatives Clearing on 7^th November 2022, under the European Market Infrastructure Regulation (EMIR). With this, the Exchange will now have greater access to the European investment communities while European counterparties will find it easier and more cost-effective to do business with Bursa Malaysia. 

Under EMIR requirements, only recognised TC-CCPs are able to provide clearing services to members or trading venues established in the European Union. Further, being recognised means that market participants from Europe are subjected to lower capital requirements/charges under the Basel III framework introduced by the Basel Committee on Banking Supervision, which enables European members to manage their counterparty risk efficiently. 

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