The digital platforms banks use to trade currencies and manage short-term funding will operate under updated rules from Bank Negara Malaysia (BNM).
The revised Framework for Electronic Trading Platforms takes effect on 1 November 2026 and covers Malaysia’s wholesale money and foreign exchange markets.
BNM Requires Separate Approvals for Each Platform
Operators must obtain BNM’s written approval for each trading platform they offer.
Approvals cannot be transferred to affiliated companies and are generally valid for five years, unless BNM specifies otherwise.
Renewal applications must be submitted at least 90 days before expiry.
Applicants must provide business, financial and technology details and undergo internal and independent external audits before applying.
A further audit review is required within six months of implementation.
Operators Face Security and Trading Requirements
The framework sets requirements for cybersecurity, data protection, business continuity and trading controls.
Operators must obtain users’ consent before using or disclosing their data for purposes beyond those agreed.
They must monitor trading activities for irregularities, retain transaction records for seven years and immediately report system disruptions to BNM.
Operators must also conduct due diligence on users and maintain rules for fair and orderly trading.
They cannot trade as principals or act as agents for platform users.
Revised Framework Replaces 2019 Policy
BNM’s accompanying FAQ states that Malaysian market participants must use only BNM-approved electronic trading platforms.
The central bank said the revisions follow industry feedback and ongoing reviews since the framework’s introduction in 2019.
The updated policy replaces the framework issued on 8 November 2019.
Operators offering trading services for financial instruments outside its scope must seek approval from the relevant authorities where required.
Featured image: Edited by Fintech News Malaysia, based on image by BNM
