Bank Negara Malaysia is issuing a policy document on a proposed Code of Conduct for Malaysian wholesale financial markets “to uphold professionalism and integrity in the financial markets”.
The draft sets out principles and standards to be observed by market participants in the Malaysian wholesale financial markets, including FX and money markets. It also outlines the administrative, civil and criminal actions that may be undertaken by Bank Negara on misconduct
Market participants are invited to provide written feedback on the draft, including suggestions on areas requiring further clarity and alternative proposals that Bank Negara should consider, ahead of a proposed release early in 2017.
The Malaysian Ringgit is approaching its lowest trading level against the US dollar since the Asian crisis in 1998 when the country was prompted to introduce capital controls.
In an attempt to stem the outflow of MYR, the country’s central bank, Bank Negara, last week issued a warning regarding offshore NDF trading – a move widely seen as a reintroduction of capital controls – by sending letters to compliance heads at onshore and offshore banks demanding they commit to ceasing offshore trade of MYR NDFs.