SC to conduct Fintech Innovation Lab for Alternative Trading System

PETALING JAYA: In line with the announcement made under the Budget 2018 on the introduction of Alternative Trading System (ATS) in Malaysia, the Securities Commission (SC) will be conducting a Fintech Innovation Lab for those interested in establishing and operating an ATS.
The commission said in a statement that the aforementioned parties can apply to participate in the regulatory sandbox sessions carried out under the program, which will commence from Jan 2 and end on March 31, 2018.
“Since 2015, the SC has pioneered the regulatory sandboxing approach where regulation is imposed on a graduated scale in line with the growth of the market and complexity of the product. The Lab allows the SC to discuss and provide feedback to innovative business ideas and concepts, and to explore proof of concept solutions designed to meet specific industry needs,” the SC said.
Feedback gathered from the engagement sessions will be taken into consideration by the commission in formulating the SC’s regulatory framework for ATS.
Participants are expected to describe the details of their ATS proposal and provide the SC with information on the type of ATS, the features of the proposed market which include the products to be traded, its users, operating rules and procedures, post-trade arrangements and the value proposition to the overall capital market – during the regulatory sandbox sessions.