Bank Negara Malaysia/Bloomberg


Bank Negara Malaysia plans to boost market accessibility, liquidity

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The move comes a month after FTSE Russell announced that it may drop Malaysia from its World Government Bond Index (WGBI) due to concerns over market accessibility.


Bank Negara Malaysia (BNM) has announced several initiatives for the foreign-exchange (forex), derivative and repurchase agreement markets to improve the accessibility as well as the liquidity of the Malaysian financial markets following engagements with market participants to identify the best measures for a conducive and vibrant environment.

Nor Shamsiah Mohd Yunus, the Governor of BNM, said that the initiatives are a result of the central bank’s continuous “productive talks” with market participants, including local and international investors, as well as index providers, rather than a direct response to FTSE Russell’s review of Malaysian debt.

In April, FTSE Russell said that it may drop Malaysia from WGBI, adding that Malaysia could avoid a downgrade and remain on the index if it fulfils the eligibility criteria at the upcoming review in September 2019.

The regulator will also collaborate with the Securities Commission Malaysia, Bursa Malaysia and key market players to further enhance the delivery mechanism for Malaysian Government Securities (MGS) futures settlements, in order to develop an effective hedging platform for investors, reported local daily, The Malaysian Reserve.

TAGS : FTSE Russell, Bank Negara Malaysia, Malaysian Government Securities, Securities Commission Malaysia, Bursa Malaysia

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