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FMC - Intro

 

The Financial Markets Committee (FMC) was established in 2016 to broaden industry engagement, with a focus of reviewing and formulating comprehensive strategies for the wholesale financial markets.

The FMC comprises participants / representatives from Bank Negara Malaysia, financial institutions, corporations, financial service providers and other institutions or stakeholders which has prominent role or participation in the financial markets.

The FMC is also aimed at providing a senior-level forum for market participants to meet regularly to discuss matters and potential issues and risk relating to the development of Malaysian financial market, which needs to meet the diverse and complex demands of a more developed and internationally integrated economy.

Mandates of the FMC

  1. To identify and assess current and potential developments and issues, structural trends and risks affecting the Malaysian financial market.
  2. To recommend on appropriate strategies and action plans to develop the Malaysian financial market.
  3. To promote market best practices and contribute towards enhancing market integrity and professionalism.

FMC - Shortcuts

 

Statements by the FMC

Articles of Interest

FMC - Members

Committee Members

Financial Markets Committee Members
  1. Adnan Zaylani Mohamad Zahid, Deputy Governor, Bank Negara Malaysia
  2. Mohamad Ali Iqbal Abdul Khalid, Assistant Governor, Bank Negara Malaysia
  3. Tai Mei Ling, General Manager, Securities Commission
  4. Hanif Ghulam, Executive Director, Group Treasury, Affin Bank Group
  5. Datuk Jamzidi Khalid, Managing Director, Wholesale Banking, AmBank Group
  6. Chu Kok Wei, Co-CEO, Group Wholesale Banking, CIMB Group
  7. Alvin Kong, Head of Global Markets, HSBC Bank Malaysia Berhad
  8. Md Farid Kairi, Deputy CEO, Group Global Banking and Managing Director, Global Markets, Malayan Banking Berhad
  9. Wong Siew Lin, Chief Investment Officer, Allianz Malaysia Berhad
  10. Raymond Tang, Chief Executive Officer, Eastspring Investments Berhad
  11. Latifah Mohamed Yusof, Head of Corporate Finance & Treasury, Malaysia Airlines Bhd
  12. Doris Tay, Managing Director, Panasonic Financial Centre Bhd
  13. Datin Nor Hanifah Hashim, CEO, Head of Malaysia/Head Malaysia, Fixed Income & Sukuk Franklin Templeton GSC Asset Management Sdn Bhd
Members of Subcommittee on Islamic Financial Market
  1. Shahredza bin Minhat, Deputy Director, Bank Negara Malaysia
  2. Bilal bin Mohd Parid, Manager, Bank Negara Malaysia
  3. Dr. Suhaimi bin Mohd Yusof, Shariah Specialist, Bank Negara Malaysia
  4. Hanif Ghulam, Executive Director, Group Treasury, Affin Bank Group
  5. Ina Hasniza, Regional Islamic Treasurer, CIMB Islamic Bank
  6. Azdini binti Nor Azman, Director, Investment Solutions, Bank Islam Malaysia Berhad
  7. Raiyana Abdul, Associate Director, Global Markets, Maybank Islamic
  8. Suzaizi Mohd Morshid, Head of Treasury, RHB Islamic Bank
  9. Azhar bin Ahmad, Head of Capital Market Department, Kumpulan Wang Simpanan Pekerja
Members of Subcommittee on Bond Market
  1. Mohamad Ali Iqbal Abdul Khalid, Assistant Governor, Bank Negara Malaysia
  2. Jamzidi Khalid, Managing Director, Wholesale Banking, AmBank Group
  3. Chu Kok Wei, Head of Treasury & Markets, CIMB Group
  4. Alvin Kong, Head of Global Markets, HSBC Bank Malaysia Berhad
  5. Robbie Ng, Co-Head of Treasury, Executive Director, JP Morgan Chase
  6. Wong Siew Lin, Chief Investment Officer, Allianz Malaysia Berhad
  7. Delvin Chong, Senior Vice President, Treasury & Markets, Cagamas Berhad
  8. Azizul Zainol, Head of Treasury Department, Kumpulan Wang Simpanan Pekerja

FMC - Developments so far

Market Development Initiatives

A well-functioning financial market serves an important role for the development of the real economy. This is even more so for highly open economies like Malaysia, where the exchange rate is an important element in trade and investment. The Bank has continuously undertaken financial markets initiatives as part of its strategy and mandate to broaden and deepen the Malaysian financial markets. The Bank¡¯s strategy is multi-dimensional, and includes initiatives which aim to reset the direction of the onshore market, strengthen the pillars of the onshore financial markets and enhance market resiliency.

The initiatives that have been introduced thus far are as follows:

May 2016

Establishment of Financial Markets Committee

July 2016

Adopt global best practices

  • Transaction based KL USD/MYR Reference Rate
  • Extension of onshore ringgit market official closing hour.
Dec 2016

Rebalance onshore FX demand and supply

  • 25% retention of export proceeds in foreign currency
  • Ringgit trade settlement among residents
  • Streamline onshore and offshore foreign currency investment limit

Promote FX risk management onshore

  • Active hedging below RM6 million net open position
  • Active hedging for institutional investors
  • Expansion of Appointed Overseas Office framework
April 2017

Additional FX risk management flexibilities

  • Streamline passive and dynamic hedging flexibilities for investors
  • Active hedging for corporations

Improve bond market liquidity

  • Liberalise regulated short-selling to allow all residents to participate

Promote high standards of market integrity

  • New code of conduct for wholesale financial market

Strengthen financial market infrastructure

  • Segregated securities account at the large value payment system, Real-time Electronic Transfer of Funds and Securities System (RENTAS)
  • Adopt the Legal Entity Identifier (LEI) for RENTAS
Sep 2017

Additional FX risk management flexibilities

Hedging of RM exposure arising from trading of palm oil derivative contracts on Bursa Malaysia.

Nov 2017

Improve bond market liquidity

  • Introduce regulated Short-Selling of MGII and Islamic banks under bilateral binding promise concept

Enhance liquidity intermediation

  • Issuance of Bank Negara Interbank Bills (BNIBs) in MYR and USD to onshore licensed banks
  • Expand eligible collateral for Monetary Operations

FMC - FAQ

Frequently Asked Questions

The FMC is an engagement platform with the financial market industry and participants to discuss and assess trends, issues and develop ideas and suggestions on areas in relation to financial market development. The specific mandates of FMC are as follows:

  • To identify and assess current and potential developments and issues, structural trends and risks affecting the Malaysian financial markets
  • To formulate policy recommendations and action plans to develop the Malaysian financial markets for consideration by the stakeholders and regulatory bodies
  • To promote market best practices and contribute towards enhancing market integrity and professionalism.

The FMC covers all aspects of financial markets under the purview of BNM ¨C foreign exchange, money, government bond and derivatives markets where the underlyings are based on foreign exchange and interest rates. At macro-level, the FMC will look into areas such as participants, products/instruments, liquidity, infrastructures, surveillance, rules and regulation, market transparency, talent and education.

Thus far, Islamic financial market and the bond market are the two priority areas for the FMC based on feedback from members. Therefore two subcommittees, i.e. Islamic Financial Market Subcommittee and Bond Market Subcommittee, have been formed to look into these areas with greater details. Other subcommittees may be considered or dissolved as the need arises. For example previously, there was a FX Market Subcommitee to look at improving the foreign exchange market.

Apart from BNM, the committee members are from Securities Commission Malaysia and relevant industry associations, such as Financial Market Association Malaysia (FMAM), Malaysian Association of Corporate Treasurer (MACT), Life Insurance Association of Malaysia (LIAM), and Malaysian Association of Asset Managers (MAAM), which have prominent role or participation in the Malaysian financial markets.

Representatives from various departments in BNM are involved in the FMC as well as the subcommittees. Specifically, they are from Jabatan Operasi Pelaburan dan Pasaran Kewangan (JOPPK), Jabatan Pembangunan Sektor Kewangan (JPSK) and Jabatan Pentadbiran Pertukaran Asing (JPPA), assisted by Jabatan Komunikasi Strategik (JKK) for communication purpose. This may include other departments that are related to the matters discussed at the FMC meetings.

Please refer to the FMC's Meeting Summaries page for summary of issues discussed in the meetings.

Comments and feedback from public are welcome and can be forwarded to the committee through email: fmc@bnm.gov.my.