News
CDS Account Liberalisation and Clearing Fee
BackOct 06, 2005
| eneral Announcement Reference No BM-050930-49973 |
| Company Name | : | BURSA MALAYSIA BERHAD |
| Stock Name | : | BURSA |
| Date Announced | : | 06/10/2005 |
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| Type | : | Announcement |
| Subject | : | CDS Account Liberalisation and Clearing Fee |
Contents :
With reference to the announcement dated 14 July 2005, Bursa Malaysia Berhad ("Bursa") is pleased to announce that the liberalisation of the Central Depository System ("CDS") account structure ("the CDS Account Liberalisation") will take effect on 21 October 2005 in conjunction with the coming into effect of the Securities Industry (Central Depositories) (Exemption) Order 2005. The amendments to the Rules of Bursa Malaysia Depository Sdn. Bhd. and the Rules of Bursa Malaysia Securities Berhad in relation to the CDS Account Liberalisation will be effective on 21 October 2005.
The CDS Account Liberalisation together with changes to the trading rules is aimed at enhancing ease and efficiency in trading for investors. It will encompass:-
? Expansion of the categories of persons who are allowed to act as authorised nominees ("ANs") i.e. nominees who can hold securities for one beneficial owner per account;
? Expansion of the categories of person who are allowed to act as exempt authorised nominees ("EANs") i.e. nominees who can operate omnibus CDS accounts and hold securities for multiple beneficial owners per account;
? Removal of the conditions and specific purposes for which accounts held by ANs or EANs may be used currently;
? Removal of the requirement for the CDS account particulars to match the trading account particulars; and
? Improving trade execution and processing requirements with a view to increasing efficiency.
In addition to the CDS Account Liberalisation, the revision to the clearing fee structure which was announced earlier on 14 July 2005, will also take effect on 21 October 2005. Whilst the current clearing fee of 0.04% of contract value remains unchanged, the maximum clearing fee payable per contract will be increased from RM200 to RM500.
As stated in the announcement dated 14 July 2005, the impact arising from the CDS Account Liberalisation cannot be ascertained at this point. However, any adverse impact would be mitigated by the increase in the maximum clearing fee payable per contract.