On September 6, 2022, Bursa Malaysia added Maybank Investment Bank Bhd as a user and supplier under the Islamic Securities Selling and Buying , Negotiated Transaction framework. This move is expected to facilitate the trading of shariah-compliant securities on Bursa. Maybank Investment Bank Bhd will be responsible for facilitating the selling and buying of these securities, while also enabling risk management and hedging activities for market participants. The Islamic Securities Selling and Buying Negotiated Transaction framework was launched in December 2017 as the world’s first shariah-compliant alternative to lending and borrowing securities.
introduction to the issbnt framework
The ISSBNT framework was developed to improve trading liquidity, create a facilitative trading environment, and increase the velocity of shariah-compliant securities. According to Datuk Muhamad Umar Swift, the chief executive officer of Bursa, the addition of more participating organizations under the ISSBNT framework demonstrates the exchange’s commitment to growing the Islamic equity market. This is in response to increased demand for shariah-compliant assets. As Swift said in a statement, “To spur the growth and vibrancy of our marketplace, upholding Malaysia’s position as the world’s leading Islamic shariah-compliant equity market. We look forward to the increased participation and continued support from our brokers.”
maybank investment bank’s role
Maybank Investment Bank Bhd is excited to be an approved supplier and user under the ISSBNT framework. According to Datuk Fad’l Mohamed, the CEO of Maybank IB, “We are excited to be an approved supplier and user under the ISSBNT framework. Which will enable us to support our clients’ investment management strategies,” the investment bank sees strong demand for shariah-compliant assets among investors. This move is expected to benefit Maybank’s clients, who are looking for shariah-compliant investment options. Maybank IB will be able to facilitate the buying and selling of these securities, while also providing risk management and hedging services.
benefits of the issbnt framework
The ISSBNT framework provides several benefits to market participants. It allows for the buying and selling of shariah-compliant securities, which is essential for investors who want to adhere to Islamic principles. The framework also enables risk management and hedging activities, which can help to reduce the risk associated with investing in these securities. According to Bursa, the ISSBNT framework has been successful in improving trading liquidity and creating a facilitative trading environment. The addition of Maybank IB as a user and supplier is expected to further enhance the framework’s benefits.
future prospects
The addition of Maybank IB as a user and supplier under the ISSBNT framework is expected to have a positive impact on the Islamic equity market. As Datuk Muhamad Umar Swift said, the exchange is committed to growing the Islamic equity market and upholding Malaysia’s position as the world’s leading Islamic shariah-compliant equity market. The increased participation and support from brokers are expected to spur the growth and vibrancy of the marketplace. Maybank IB’s participation is also expected to support the growth of shariah-compliant assets, which are in high demand among investors. Before Maybank IB, CGS-CIMB Securities Sdn Bhd and Kenaga Investment Bank Bhd were added as user representatives and suppliers of the ISSBNT framework.
The growth of the Islamic equity market is expected to continue, driven by increasing demand for shariah-compliant assets. The ISSBNT framework, with the participation of Maybank IB and other organizations, is well-positioned to support this growth. As the world’s first shariah-compliant alternative to lending and borrowing securities, the ISSBNT framework provides a unique solution for investors who want to adhere to Islamic principles. With the addition of Maybank IB as a user and supplier, the framework is expected to become even more effective in facilitating the trading of shariah-compliant securities. The future of the Islamic equity market looks promising, with the ISSBNT framework playing a important role in its growth and development.
