SC invites public feedback on recommendations for securities settlement systems

Kuala Lumpur, 17 January 2001

The Securities Commission (SC) today announced that the Committee on Payment and Settlement Systems-International Organization of Securities Commissions (CPSS-IOSCO) Joint Task Force on Securities Settlement Systems is seeking public comments on its consultative report relating to securities settlement systems. The SC is a member of the CPSS-IOSCO Joint Task Force.

The report, entitled Recommendations for Securities Settlement Systems, identifies minimum requirements and best practices for securities settlement systems. These encompass the legal framework for securities settlements, risk management, access, governance, efficiency, transparency, and regulation and oversight.

A securities settlement system broadly refers to the full set of institutional arrangements for confirmation, clearance and settlement of securities trades and for the safekeeping of securities. The recommendations are relevant primarily to central securities depositories (CSDs), stock exchanges, trade associations and other operators of trade confirmation systems, central counterparties, settlement banks, or custodians and other interested parties. In the Malaysian context, a CSD is equivalent to the Malaysian Central Depository Sdn. Bhd.

The SC said that the report has implications in relation to the implementation of international standards within the securities settlement systems of the Malaysian capital markets. The SC is committed towards the ongoing efforts for the implementation of a sound, efficient and safe securities settlement system as it is essential to promote confidence in the capital market and reduce risk to its investors. On this basis, the SC strongly encourages the Malaysian public and capital market participants to view and provide feedback on the recommendations.

The public may view the report on the websites of the SC and IOSCO. The deadline for submission of feedback is 9 April 2001.

Public comments must be submitted in writing. These comments may be sent to the SC, for onward transmission to the CPSS-IOSCO Joint Task Force on Securities Settlement Systems:

International Affairs Department
Securities Commission
3 Persiaran Bukit Kiara
50490 Kuala Lumpur
Fax: + 603 6201 5078
E-mail: [email protected]

Members of the public may contact the International Affairs Department for queries regarding the Report at +603-6204 8000.

Alternatively, comments in English may be sent directly to the Secretariat of the CPSS-IOSCO Joint Task Force on Securities Settlement Systems by post, fax or e-mail, addressed as follows:

Secretariat to the CPSS-IOSCO Joint Task Force
on Securities Settlement Systems
Bank for International Settlements
CH-4002 Basel, Switzerland
Fax: +41 61 280 9100
E-mail: [email protected]

(please state "Joint Task Force Recommendations" in the subject line of the message)

The CPSS-IOSCO Joint Task Force on Securities Settlement Systems was established in December 1999 with the intention of making securities settlement systems safer and more efficient. The work of the Task Force is also in line with efforts of the Financial Stability Forum to address vulnerabilities in the international financial system.

The Task Force comprises 28 central bankers and securities regulators from 18 countries and regions and the European Union. The consultative report also benefited from valuable inputs from participants in a consultative meeting held at the Bank for International Settlements in January 2000, which was attended by representatives from more than 50 public institutions, the International Monetary Fund and the World Bank. The Task Force has also reviewed private sector efforts in this area, notably the Group of Thirty's 1989 Standards, and has discussed the Task Force's work with private sector operators of and participants in securities settlement systems.

Click here for the consultative report relating to securities settlement systems.

SECURITIES COMMISSION MALAYSIA