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.

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.

Applicants must provide business, financial and technology details and undergo internal and independent external audits before applying.

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.

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.

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

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