On Apr. 3, MLY CB issued rules for payments, securities and currency.
MLY CB issued 3 updated operational procedures, and participation rules, for systems.
Participation Rules
MLY CB published updatedParticipation rules for payments and securities services, as applicable to RENTAS and FAST participants, to provide some clarification on issues.
This removed cyber resilience guidelines for all participants of both RENTAS and FAST.
Clause 16.0 was also updated with changes to clause 16.1 and sub-clauses, to include system recovery as one of the businesses continuity components under these rules.
Under Part XI CRMA for RENTAS and FAST participants, new clauses have been added as new clauses 40-42, on Introduction, objective and scope of assessment for CRMA.
Foreign Currency Settlement
MLY CB further published the Operational procedures for foreign currency settlement in the real time electronic transfer of funds and securities system (RENTAS), rules.
Added clause 7.8 and 7.9 to clarify the handling of payments settlement in RENTAS in the event of unexpected banking holiday, to ensure clarity for all of the system users.
Added new sub-cause 27.4.6 to introduce RENTAS iLINK new module in RENTAS Portal.
Changes also removed clause 28.1 on RENTAS iLINK user manuals, no longer needed.
On Guideline IV - Supplementary guideline on co-existence of RENTAS ISO20022 (MX) and ISO15022 (MT) a pair of new clauses had been added, clause 4.3 and clause 5.2 to manage additional information by RENTAS participants in co-existence of MT-MX.
Also, Appendix IX external user access request form was updated to be applicable for BNM and external use, and did remove cyber security department (CSD) sign off need.
In the glossary, the documents had been updated to add definition of banking holiday and unexpected banking holiday, and inserted eligible into the intraday credit facility.
Ringgit Settlement
MLY CB also published Operational procedures for Malaysian ringgit (MYR) settlement in the real time electronic transfer of funds and securities system (RENTAS) rules.
Added clause 8.11 and 8.12 to clarify the handling of payments settlement in RENTAS in the event of unexpected banking holiday, to ensure clarity for all the system users.
Added new sub-cause 34.4.6 to introduce RENTAS iLINK new module in RENTAS Portal.
The changes had also removed all of clause 35.1 on the RENTAS iLINK user manuals.
On Guideline IV - Supplementary guideline on co-existence of RENTAS ISO20022 (MX) and ISO15022 (MT) a pair of new clauses had been added, clause 4.3 and clause 5.2 to manage additional information by RENTAS participants in co-existence of MT-MX.
Also, Appendix XV external user access request form was updated to be applicable for BNM and external use, and did remove cyber security department (CSD) sign off need.
In glossary, the documents had been updated to add definition of banking holiday and unexpected banking holiday, and inserted eligible into the intraday credit facility.
Effectiveness
These new requirements all now apply from the date of rule creation, on Apr. 1, 2023.
MLY CB updated clause 3.2.1 to include the new platform SWIFT Alliance Cloud (SAC) and the requirement for participants opting for SWIFT Alliance Lite2 (SAL2) and SAC.
Further, ML CB has updated clause 8.27 to reflect changes to the provision of MYR intraday credit during MYR evening settlement window and RPS business hours.
Changes were also made to clause 9.0, clause 19.0, the appendix and glossary.
The amendments come into effect on Jan. 2, 2024.
Document dated Dec. 26, 2023, received from MLY CB Dec. 27, summarized on Jan. 2.
In Feb. 2024, MLY CB drafted paper on RENTAS modernization plans, see #202808.
Jun. 25, 2024 Updates to Procedures, Rules
On Jun. 25, 2024, MLY CB issued version 1.5 on the RENTAS operational procedures for foreign currency settlement, version 1.6 for Malaysian Ringgit (MYR) settlement.
Updated to remove iLink accessibility via internet, updated Type 1 membership table to recognize bridge institutions as RENTAS members upon designation, per the PIDM act.
Added MyDebit 2nd Window in MYR settlement activities. reflect changes of payment message format from MT to MX, while retaining securities messaging format as MT.
Removed USD as available currency from forex settlement service in RENTAS.
Also issued version 1.3 of Participation rules for payments and securities services.
Separated clause 8.2 into two sections; outlines possible actions or scenarios during a resolution and specifies different procedures for handling the insolvency of facility agent, and insolvency procedures for non-PIDM MI operating SSDS account.
All of the updated versions are effective from Jul. 1, 2024.
Documents dated Jun. 25, 2024, received from MLY CB Jun. 28, summarized on Jul. 3.
Replaced banking holiday with holiday; updated contingency terminal charges at BNM premise to include RENTAS bank gateway (RBG) activation fee, streamlined utilization fee of iLINK or RBG; updated the definition of recovery time objective (RTO).
Plus, version 1.4 of Participation rules for payments and securities services, which require participants to resubmit transactions to BNM upon request in the event of data loss/corruption, ensure finality of settlement during worst case scenario disasters.
The updated procedures and rules will be implemented from Nov. 1, 2024.
