BNM lengthens trading platform approvals and tightens oversight
Operators will have to monitor intraday trading and alert BNM to irregularities under rules taking effect on Nov 1, 2026.
Bank Negara Malaysia (BNM) is extending electronic trading platform approvals to five years from three, alongside compulsory surveillance of intraday activity. Its revised Framework for Electronic Trading Platforms (ETP) takes effect on Nov 1, 2026, superseding the November 2019 framework.
The rules govern platforms where banks and other participants exchange currencies and short-term financial instruments in Malaysia’s wholesale markets. Monitoring was previously encouraged; approved operators must now alert BNM when they identify irregularities or suspect suspicious trading patterns.
Written permission from BNM is required before operations begin. While approvals may last five years, the central bank retains discretion to set another duration. Operators seeking renewal must apply no later than 90 days ahead of expiry.
Quarterly submissions must identify onshore users from both banking and non-banking groups, with a deadline of 10 business days from the required submission date. BNM can additionally request statistics and transaction information.
The requirements also address cybersecurity, due diligence on users, protection of data and continuity planning. Transaction records and records of trade disputes must remain available for seven years. Operators must immediately alert BNM if systems are disrupted and subsequently report on remedial work.
Advance notification is required for changes to previously supplied information, including business plans, and to platform services or functions. Systems must undergo testing before deployment and regular capacity checks for trading surges. Boards and senior management must oversee compliance, risk management and internal controls.
Exemptions include certain regulated exchanges, qualifying single-bank platforms, general-purpose communication tools and client-operated white-label platforms carrying clients’ own brands. Affiliates operating platforms for overseas exchanges do not receive the relevant exchange exemption. BNM said continuing reviews and industry feedback informed the revisions.
