KUALA LUMPUR: Bursa Malaysia Bhd, in collaboration with Securities Commission Malaysia (SC), Bank Negara Malaysia (BNM) and key market stakeholders, today announced the target launch date of September for the physical settlement of Malaysian Government Securities (MGS) futures.
The initiative is set to further enhance the hedging platform for investors, said the exchange in a statement.
The exchange said it is working with the stakeholders to create the optimal and efficient physical delivery model for MGS futures for investors and market participants, taking into consideration settlement efficiency risk and transparency to regulators.
“As we move closer towards the target launch date, Bursa Malaysia remains committed and will continue to work closely with BNM, SC and market stakeholders to ensure that the enhanced delivery mechanism of MGS futures will provide an effective hedging platform for investors.
“With this change in settlement methodology, there will be a series of industry-wide testing set to take place beginning June to ensure system and market readiness before the launch,” it said. – March 3, 2020, Bernama
