On 21 August 2019 we issued an Alert
on the Exposure Draft of the Policy Document on Repurchase Agreement Transactions issued by Bank Negara Malaysia (‘BNM’).
BNM has on 12 November 2019 issued the Policy Document on Repurchase Agreement Transactions
(‘Repo Policy Document’) which came into effect on 12 November 2019.
The Repo Policy Document applies to licensed banks and licensed investment banks and supersedes the Policy Document on Repurchase Agreement Transactions (BNM/RH/PD 032-3) issued on 31 July 2015 (‘Superseded Document’).
There does not appear to be any substantive amendments to the Exposure Draft of the Repo Policy Document except for the omission from paragraph 8.6 of the Repo Policy Document of the guidance that the minimum market lot for Ringgit Repo is RM100,000.
As mentioned in our earlier Alert, the main changes introduced under the Repo Policy Document are as follows –