Bursa Malaysia introduces green lane policy for equities brokers

Bursa Malaysia introduces green lane policy for equities brokers
Business & Markets 2013
Written by Bernama
Monday, 08 April 2013 09:41


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KUALA LUMPUR: Bursa Malaysia Securities Bhd will soon introduce the “Green Lane Policy” where eligible equities brokers can commence their activities with only a notification process to the authority.

The new policy, which will take effect on May 2, will shorten the time for equities brokers to commence their new activities, including the opening of new branches or electronic access facilities, the provision of margin financing and the commencement of proprietary trading.

The initiative will enhance efficiency of doing business for equities brokers as well as to encourage greater self-regulation, said Bursa Malaysia Securities in a statement.

“Equities brokers who meet the criteria of familiarity, supervisory controls and display high standards of business conduct will be eligible to adopt the policy.

“This will encourage equities brokers to enhance their self regulation so as to avail themselves of the incentives under the Green Lane Policy,” it added.

Bursa Malaysia CEO Datuk Tajuddin Atan hoped the introduction of the policy, coupled with the recently revamped business rules for securities brokers, would enhance the attractiveness of the market as a place for intermediation as well as investments.

At present, all applications by equities brokers for the commencement of a new activity are processed either through the self-assessment approach or the declaratory approach where approvals from Bursa Malaysia Securities are required. — Bernama