Malaysia to Promote Greater Capital Market Innovation

The SC will invite innovative stockbroking models such as digital-only brokers and algo trading platforms. Bursa's trading and clearing memberships will be separated.

Malaysia's SC (Securities Commission) has said it will facilitate the entry of innovative stockbroking models with differentiated value propositions to spur greater innovation, create greater diversity among market participants and enhance value for investors.

SC Chairman Datuk Syed Zaid Albar said that the Covid-19 pandemic has forced governments, regulators and industry players alike to reflect on the current landscape and systems, and rebuild for a more resilient, sustainable and inclusive future.

“The Malaysian investor population has grown to be a lot more diverse, and technological advancements have changed the way investors interact with the capital market,” he said. “It is important that our industry also evolves to meet the diverse needs of investors.”

“These can be in the form of digital-only brokers that can cater to investors looking for no-frills services, or for example, algorithmic trading platforms or multi-asset brokers for more sophisticated investors.”

The SC, working with Bursa Malaysia, will enable a facilitative market structure, allowing for more flexible business models with more efficient capital structures through the separation of trading and clearing memberships on the exchange.

The announcement was made by Malaysia Finance Minister YB Tengku Dato' Sri Zafrul Aziz at the 16th Invest Malaysia, held virtually for the first time since its inception in 2004.

Algo trading, Bursa Malaysia, Capital Market, Clearing, Covid-19, Datuk Syed Zaid Albar, digital-only brokers, innovation, SC Malaysia, Stockbroking, Trading