The Securities Commission Malaysia (SC) has announced that parties interested in establishing and operating an Alternative Trading System (ATS) in Malaysia can apply to participate in regulatory sandbox sessions under the SC’s FinTech Innovation Lab (aFINity – alliance of Fintech community). This follows the Budget 2018 announcement on the introduction of ATS in the Malaysian capital market.
The SC’s Innovation Lab will commence from 2 January to 30 March 2018. Launched in 2015, the SC regulatory sandboxing has sought to create an ecosystem where regulation is imposed on a graduated scale in line with the growth of the market and complexity of the product. The Lab allows the SC to discuss and provide feedback to innovative Fintech ideas and concepts, and to explore proof of concept solutions designed to meet specific industry needs.
For ATS applicants, interested parties are expected to describe the details of its ATS proposal and provide the SC with information on the type of ATS, the features of the proposed market which include the products to be traded, its users, operating rules and procedures, post-trade arrangements and the value proposition to the overall capital market. A description of the required information can be found here. You may contact the SC via email at [email protected]