KUALA LUMPUR (Aug 18): Bursa Malaysia Bhd said on Thursday it has onboarded CGS-CIMB Securities Sdn Bhd and Kenanga Investment Bank Berhad (KIBB) as approved supplier and user representatives to facilitate the buying and selling of Islamic or Shariah-compliant securities under Bursa's Islamic Securities Selling and Buying–Negotiated Transaction (ISSBNT) Framework.

In a statement, exchange operator and regulator Bursa said the ISSBNT framework, which was launched in December 2017, is the world’s first Shariah-compliant alternative to securities borrowing and lending (SBL).

"The platform was developed as a mechanism to provide a facilitative trading environment and improve trading liquidity and velocity of securities assets, all while complementing the ever-growing value of Shariah-compliant securities in Malaysia.

"As supplier and user representatives, CGS-CIMB and KIBB will act as an agent to facilitate the buying and selling of Shariah-compliant securities, as well as enable hedging and risk management activities for market participants while adhering to Shariah principles," Bursa said.

Bursa chief executive officer (CEO) Datuk Muhamad Umar Swift said in the statement that the facilitation of buying and selling of Shariah-compliant securities by KIBB and CGS-CIMB marks another significant contribution that is paramount to fostering a more conducive Islamic capital market ecosystem.

“We commend their participation and look forward to continuing support from other market players and investors to strengthen Malaysia’s position as the world’s leading Islamic Shariah-compliant equities market,” Muhamad Umar said.

Bursa said that to date, there are 179 Shariah-compliant securities eligible for ISSBNT, as reviewed and approved by the Securities Commission Malaysia's Shariah Advisory Council.

CGS-CIMB CEO Ruzi Rani Ajith said in the statement that CGS-CIMB’s facilitation of the buying and selling of Shariah-compliant securities will create a more enabling trading environment, increase market liquidity and make the Shariah-compliant equity market more attractive to market participants.

"We will continue to offer innovative Shariah-compliant products towards growing Malaysia’s Islamic capital market ecosystem,” she said.

KIBB group managing director Datuk Chay Wai Leong said in the statement that Bursa's move to onboard KIBB as an approved supplier and user representative under the ISSBNT framework signifies KIBB's unique position in facilitating the buying and selling of listed Shariah-compliant securities within the ISSBNT model, in addition to KIBB's existing Shariah-compliant products.

"We look forward to continuing being a part of the journey to develop Malaysia’s Shariah-compliant securities market for the years to come,” Chay said.