The policy will shorten the time to market for equities brokers to commence their new activities which includes the opening of new branches or Electronic Access facilities, the provision of margin financing and the commencement of proprietary trading.
This is part of the initiative by the Exchange to enhance efficiency of doing business for equity brokers as well as to encourage greater self-regulation. Equities brokers which have met the criteria of familiarity, supervisory controls and displayed high standards of business conduct will be eligible to adopt the policy. This will encourage equities brokers to enhance their self regulation so as to avail themselves of the incentives under the Green Lane Policy.
Bursa Malaysia Chief Executive Officer, Dato’ Tajuddin Atan said, "We hope that the introduction of this policy, coupled with the recently revamped Business Rules for securities brokers will enhance the attractiveness of our market as a place for intermediation as well as investments."
Presently, all applications by the equities brokers to Bursa Malaysia Securities for the commencement of a new activity are processed either through the Self-Assessment Approach (SAA) or the Declaratory Approach (DA) where approvals from Bursa Malaysia Securities are required.