Securities Commission to open ‘sandbox’ for alternative trading system in 2018December 27, 2017
Securities Commission Malaysia (SC) is inviting companies that are keen to establish and operate an alternative trading system (ATS) in the country to take part in its ‘regulatory sandbox’ sessions in the first quarter of 2018.
The so-called sandbox will allow the system to be tested in a live environment with the necessary safeguards under the supervision of the regulator.
According to the SC, which has been practising this approach since 2015, it enables “regulations to be imposed on a graduated scale”.
“This (sandboxing approach) allows the SC to discuss and provide feedback to innovative business ideas and concepts, and to explore proof of concept solutions designed to meet specific industry needs,” the regulator says in a December 21 statement.
Sandbox sessions for the ATS will start on January 2 and run until March 30.
Malaysia announced plans to introduce the ATS next year in the 2018 federal budget in October.
Products that will be considered for the Malaysian ATS include shares, derivatives, bonds, exchange-traded funds, unit trusts, primary market issuance, and digital currencies, the SC says.
An ATS – variously known as multilateral trading facilities, electronic communication networks, cross networks, dark pools or call networks – is a non-exchange trading venue that matches buyers and sellers, and finds counterparties for transactions.
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