Bank Negara jointly launch pilot platform

KUALA LUMPUR: Bank Negara Malaysia (BNM), The Hong Kong Monetary Authority (HKMA) and Euroclear Bank have jointly launched a pilot
platform for cross-border investment and settlement of debt securities to be operational on March 30.

In a joint statement, they said the pilot platform would enhance
cross-border debt securities settlement efficiency and strengthen the capacity for debt securities issuance activities in the Asian region.

"Through the pilot platform, investors in Hong Kong and Malaysia can buy and hold foreign debt securities and settle cross-border transactions on a delivery-versus-payment basis while local and international bond issuers can issue a wide range of debt securities.

"The pilot platform also includes a comprehensive debt securities database of Asian debt securities maintained by Euroclear Bank," it added.

The platform signified an important step for Asian bond markets,
supported by an international central securities depository, to collaboratively strengthen post-trade infrastructure, they said.

"This would facilitate harmonisation of market practices and standardisation of the issuance and settlement of debt securities to deepen Asian bond market liquidity, attract investment and increase operational efficiency," the
statement added.

BNM Deputy Governor Muhammad Ibrahim said the rollout of the pilot platform provided investors and market intermediaries an efficient and cost-effective cross-border access to the bond markets of Malaysia and Hong Kong.

"This marks a major milestone for regional financial integration and a step towards a unified bond market platform across Asia.

"As we expect ongoing growth of emerging East Asian markets, the
implementation of the pilot platform will indeed be an important step towards sustaining growth and development in the region," he added.

Meanwhile, HKMA Deputy Chief Executive Peter Pang said the HKMA would continue to collaborate with BNM and Euroclear Bank to promote the platform to other central banks and securities settlement systems in the region and implement additional services to meet market needs.

Euroclear Bank Managing Director and Head of Business Development Anso Thiré said the group supported the initiative from the beginning and was very happy to work closely with its Asian colleagues to deliver practical ways of further
improving the bond market infrastructure in Asia.

"We value the trust that HKMA and BNM have placed in us to partner them as they embark on a multi-faceted programme of regional post-trade improvements," he added. - Bernama