Bursa Malaysia offers CDS Straight-Through Processing facility

KUALA LUMPUR: Bursa Malaysia
has introduced the CDS Straight-Through Processing (CDS-STP) facility
for its market participants to better manage transactions performed by
Central Depository System (CDS) account holders.
With the
rolling-out today of the first phase of the CDS-STP service,
subscribing brokers will be able to receive regular updates of their
clients' CDS account balances.
This will enable clients,
especially those who trade through the internet, to keep abreast of
their updated CDS account balances, thus minimising the risk of
overselling their positions.
Subscribing brokers will need to
obtain their clients' written consent to receive CDS account balances
from Bursa Malaysia under this phase.
Bursa Malaysia chief executive officer Datuk Tajuddin Atan said, "“We have received very encouraging response from the industry."
Additionally,
under this phase market participants will be provided with information
on all securities listed on Bursa Malaysia, which includes details such
as stock name, stock code, stock short name, date listed, ISIN code,
stock type, board lot size, par value and share registrar's information
and subsequent updates to these details.
Bursa Malaysia expects
to fully implement the CDS-STP by the end of the year to allow market
participants to receive intraday updates on the changes in shareholding
positions as well as to automate data entry on selected CDS
transactions.
The full-fledged CDS-STP service will reduce
manual data-entry, shorten turnaround times and facilitate faster data
capturing for market participants' back office operations.

+1 bursa!